Horizontal analysis involves:
A)Comparing individual financial statement line items with each other to understand the relationships between line items.
B)Comparing individual financial statement line items to some benchmark,typically similar competitors' financial statement line items.
C)Comparing individual financial statement line items over time.
D)Comparing individual financial statement line items that have been arranged horizontally from highest to lowest dollar amounts.

Question

Quizplus · Accepted Answer

Horizontal analysis is conducted to examine trends over time with individual financial statement line items (e.g. ,trends in Gross Profit or Net Income from one year to the next).

Horizontal Analysis Involves