The study of percentage changes in comparative financial statements is an example of
A)vertical analysis.
B)trend analysis.
C)benchmarking.
D)horizontal analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis involves the study of percentage changes over time in comparative financial statements, making it the best choice for this question. Vertical analysis involves the study of the percentage relationship between items on a single financial statement. Trend analysis involves the study of changes in financial data over multiple periods, but does not necessarily involve comparative financial statements. Benchmarking involves the comparison of a company's performance to that of its competitors or industry standards, but does not necessarily involve comparative financial statements.

The Study of Percentage Changes in Comparative Financial Statements Is