Rather than looking only at the balances reported on the financial statements,it is helpful to look at the changes in the account balances over time.This is called
A)Common analysis.
B)Vertical analysis.
C)Horizontal analysis.
D)Benchmarking

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing account balances over time to identify trends and changes. This allows for a deeper understanding of a company's financial performance and can help identify areas of improvement or concern. Common analysis and benchmarking are not related to the analysis of changes in account balances, while vertical analysis involves comparing account balances to a base amount (such as total assets) rather than changes over time.

Rather Than Looking Only at the Balances Reported on the Financial