Horizontal analysis of comparative financial statements includes the
A) development of vertically analyzed statements.
B) calculation of liquidity ratios.
C) calculation of dollar amount changes and percentage changes from the previous to the current year.
D) evaluation of financial statement data that expresses each item in the current period's financial statement as a percentage of a base amount.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing financial data over a series of periods, calculating both the dollar amount and percentage changes from one period to the next.

Horizontal Analysis of Comparative Financial Statements Includes the