The study of an individual item or account over several accounting periods, such as months, quarters or years is known as:
A)Percentage analysis
B)Horizontal analysis
C)Vertical analysis
D)Ratio analysis

Question

Quizplus · Accepted Answer

Horizontal analysis is also called trend analysis. It is the study of the behavior of individual financial statement items over several accounting periods. The analysis of a given item may focus on trends in the absolute dollar amount of the item or trends in percentages.

The Study of an Individual Item or Account Over Several