It is possible for horizontal analysis to indicate an increase in revenues from one year to another and a decrease in net income.

Name: It is possible for horizontal analysis to indicate an increase in revenues from one year to another and a decrease in net income.
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Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over time, so it is possible for revenues to increase from one year to another while net income decreases. This could be due to increased expenses or changes in accounting methods.

It Is Possible for Horizontal Analysis to Indicate an Increase