Which type of analysis compares the data of the current year to the data of the previous year in both percentage and dollar amount of increase or decrease?
A)Vertical analysis
B)Trend analysis
C)Horizontal analysis
D)Benchmarking

Question

Quizplus · Accepted Answer

Horizontal analysis compares the data of the current year to the data of the previous year in both percentage and dollar amount of increase or decrease. Vertical analysis compares the items in a financial statement to a key item within the same statement. Trend analysis examines data over a period of time to determine if there is a consistent upward or downward pattern. Benchmarking compares a company's performance to industry standards or other successful companies in the same field.

Which Type of Analysis Compares the Data of the Current