Horizontal analysis is
A)Looking at the changes in the account balances reported on a financial statement over time.
B)Looking at the changes in the account balances within a financial statement for one year.
C)Preparing an analysis of the profitability ratios in columns.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing account balances on a financial statement over a period of time to determine the changes that occurred. It is a technique used to analyze trends in financial data, identify strengths and weaknesses, and make informed decisions based on these findings.

Horizontal Analysis Is