In horizontal analysis, each item is expressed as a percentage of the
A) base year figure
B) retained earnings figure
C) total assets figure
D) net income figure

Question

Quizplus · Accepted Answer

Horizontal analysis compares a company's financial performance over time, typically using a base year as a benchmark. Each item on the financial statement is expressed as a percentage of the base year figure, which allows for easy comparison and analysis of changes in financial performance over time.

In Horizontal Analysis, Each Item Is Expressed as a Percentage