Which type of analysis would reveal a sales increase of $5000 from Year 1 to Year 2?
A)Horizontal
B)Capital
C)Profitability
D)Vertical

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over a period of time, such as year-to-year comparison, which would reveal the sales increase of $5000 from Year 1 to Year 2. Capital analysis focuses on evaluating a company's capital structure, profitability analysis investigates the profitability of the company, and vertical analysis compares items on a financial statement within a single period.

Which Type of Analysis Would Reveal a Sales Increase of $5000