A comparison of the amounts for the same item in financial statements of two or more periods is called
A) vertical analysis.
B) competitive analysis.
C) earnings per share.
D) horizontal analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis compares the amounts for the same item in financial statements of two or more periods to show the changes in dollar amounts and percentages. Vertical analysis compares each line item on the financial statements to a base amount, typically the total revenue or total assets, to show the proportionate size of each item. Competitive analysis compares the financial performance and ratios of a company to its competitors. Earnings per share (EPS) is a calculation that shows the amount of profits attributable to each share of stock.

A Comparison of the Amounts for the Same Item in Financial