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

Question

Quizplus · Accepted Answer

In horizontal analysis, financial statement amounts for a given year are compared to those of a base year, and each item is typically expressed as a percentage of its base year amount to show changes over time.

In Horizontal Analysis, Each Item Is Expressed as a Percentage