Because an absolute dollar change does not give the whole picture, horizontal analysis generally includes which of the following?
A)Rational dollars
B)Percentage changes
C)Explanations
D)Budget amounts

Question

Quizplus · Accepted Answer

Percentage changes provide a more meaningful comparison by showing the relative change in a financial statement item over time. Rational dollars, explanations, and budget amounts may also be useful in horizontal analysis but are not included in the answer as the best choice(s).

Because an Absolute Dollar Change Does Not Give the Whole