Horizontal analysis is used to reveal patterns in data covering two or more successive periods.

Question

Quizplus · Accepted Answer

Horizontal analysis is a technique used in financial statement analysis to compare data from two or more periods to identify trends and patterns over time. It involves comparing line items in financial statements such as income statements, balance sheets, and cash flow statements to reveal changes or trends in financial performance. Therefore, the statement "Horizontal analysis is used to reveal patterns in data covering two or more successive periods" is true.

Horizontal Analysis Is Used to Reveal Patterns in Data Covering