The study of percentage changes in comparative financial statements is:
A)benchmarking.
B)vertical analysis.
C)horizontal analysis.
D)common-size statements.

Question

Quizplus · Accepted Answer

The study of percentage changes in comparative financial statements is called horizontal analysis. This type of analysis helps to identify trends and patterns in financial data over time, making it useful for forecasting and decision-making. Benchmarking refers to comparing a company's performance to that of its competitors or industry standards, while vertical analysis and common-size statements focus on analyzing the composition of individual financial statements.

The Study of Percentage Changes in Comparative Financial Statements Is