Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
A)that has been arranged from the highest number to the lowest number.
B)that has been arranged from the lowest number to the highest number.
C)to determine which items are in error.
D)to determine the amount and/or percentage increase or decrease that has taken place.

Question

Quizplus · Accepted Answer

Horizontal analysis evaluates financial statement data over time to identify trends and calculate the amount and/or percentage changes, not to arrange data by size or identify errors.

Horizontal Analysis Is a Technique for Evaluating a Series of Financial