Horizontal analysis examines trends in a company
A)Over time.
B)Between income statement accounts in the same year.
C)Between balance sheet accounts in the same year.

Question

Quizplus · Accepted Answer

Horizontal analysis examines trends in a company over time, typically by comparing the financial data from multiple years. This analysis is used to identify changes and trends in the financial performance of the company and to provide insights into how the business is evolving. Comparing income statement accounts or balance sheet accounts within the same year is known as vertical analysis.

Horizontal Analysis Examines Trends in a Company