The comparison of operating expenses in Year 1 and Year 2 would be included in which of the following types of analysis?
A)Profitability
B)Capital
C)Horizontal
D)Trend

Question

Quizplus · Accepted Answer

The comparison of operating expenses in Year 1 and Year 2 is an example of horizontal analysis, which involves comparing financial data over a series of periods to identify trends and changes. Profitability analysis focuses on the organization's ability to generate profits based on its sales, while capital analysis focuses on the organization's ability to meet liabilities and invest in assets. Trend analysis involves identifying patterns and projections based on historical data.

The Comparison of Operating Expenses in Year 1 and Year