If an analyst wishes to see how sales revenue of a company has changed from one year to the next, which of the following types of financial statement analysis would be used?
A) Vertical analysis
B) Horizontal analysis
C) Ratio analysis
D) Common-size financial statement analysis

Question

Quizplus · Accepted Answer

Horizontal analysis, also known as trend analysis, is used to compare financial data over time. It helps to identify changes and trends in financial performance, such as changes in sales revenue from one year to another.

If an Analyst Wishes to See How Sales Revenue of a Company