If you wanted to compare the increase in sales to the increase in assets, which of the following tools would you use?
A)Vertical analysis
B)Horizontal analysis
C)Return on asset
D)Asset turnover

Question

Quizplus · Accepted Answer

Horizontal analysis is used to compare financial data, such as sales and assets, over a period of time to see how they increase or decrease. This makes it the appropriate tool for comparing the increase in sales to the increase in assets.

If You Wanted to Compare the Increase in Sales to the Increase