The study of an individual financial statement item over several accounting periods is called:
A)Horizontal analysis.
B)Vertical analysis.
C)Ratio analysis.
D)Time and motion analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing the same financial statement item across multiple accounting periods to identify trends or changes. Vertical analysis involves comparing different items within the same financial statement for a single accounting period. Ratio analysis involves using financial ratios to evaluate a company's performance and financial health. Time and motion analysis is not related to financial statements.

The Study of an Individual Financial Statement Item Over Several