If an analyst wishes to see how sales revenue of a company has changed from one year to the next, which of the following types of financial statement analysis would be used?
A)Ratio analysis
B)Common- size financial statement analysis
C)Vertical analysis
D)Horizontal analysis

Question

Quizplus · Accepted Answer

Horizontal analysis is used to compare financial data over multiple periods, allowing the analyst to see changes in sales revenue from one year to the next.

If an Analyst Wishes to See How Sales Revenue of a Company