The analysis of percentage changes in comparative statements is known as:
A)benchmarking analysis.
B)horizontal analysis.
C)vertical analysis.
D)economic value added analysis.

Question

Quizplus · Accepted Answer

Percentage changes in comparative statements are analyzed through horizontal analysis. This involves comparing financial information of a company over time, usually in the form of annual financial statements. The purpose of this analysis is to identify trends and changes in the financial performance of a company. Benchmarking analysis involves comparing a company's performance to that of its industry competitors, while vertical analysis involves analyzing the relationship between different items and categories of financial statements, usually by expressing each item as a percentage of a base (such as net sales or total assets). Economic value added analysis is a financial performance metric that takes into account the cost of capital to determine the value added by a company's operations.

The Analysis of Percentage Changes in Comparative Statements Is Known