A comparison of the amounts for the same item in the financial statements of two or more periods is called:
A)vertical analysis.
B)comparative analysis.
C)horizontal analysis.
D)trend analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis compares the amounts for the same item in the financial statements of two or more periods. Vertical analysis compares the percentage of each item in relation to a base (such as total assets or sales). Comparative analysis can refer to either horizontal or vertical analysis. Trend analysis examines changes in data over time to identify patterns or trends.

A Comparison of the Amounts for the Same Item in the Financial