John and Elizabeth are evaluating three telecommunication companies to determine the best company to invest in. Horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help determine the increase in their profits.

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial statements of a company over multiple years to determine changes in financial performance, making it a useful tool for comparing multiple companies and determining which one is performing better in terms of profits.

John and Elizabeth Are Evaluating Three Telecommunication Companies to Determine