What are the two main ways to analyze financial statements?
A) Benchmarking and horizontal analysis
B) Benchmarking and common-size analysis
C) Common-size analysis and vertical analysis
D) Horizontal analysis and vertical analysis

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over time, while vertical analysis looks at financial statements as a percentage of a base figure within the same period, allowing for the assessment of relative changes and proportions.

What Are the Two Main Ways to Analyze Financial Statements