Horizontal analysis is the comparison of:
A)stakeholders' equity values for each owner in the same financial year.
B)sales figures of different divisions of a firm over one financial quarter.
C)reported account values of two different firms in the same financial year.
D)account values reported on financial statements over two or more years.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing account values on financial statements over two or more years to identify trends, changes, or fluctuations. This analysis provides insight into a company's overall financial performance over time and helps in identifying potential areas of concern or improvement.

Horizontal Analysis Is the Comparison Of