Which of the following is the most direct method of focusing on changes in the company's balance sheet and income statement?
A) Calculating key ratios and comparing them from period to period
B) Comparing account balances in the statements from one period to the next
C) Performing a vertical analysis
D) Performing a horizontal analysis

Question

Quizplus · Accepted Answer

Performing a horizontal analysis directly focuses on the changes in financial statement numbers and percentages from one period to the next, allowing for a clear view of growth, decline, or stability over time.

Which of the Following Is the Most Direct Method of Focusing