Horizontal analysis:
A) Evaluates financial data across industries.
B) Is the presentation of financial ratios.
C) Is a tool used to evaluate financial statement items relative to industry statistics.
D) Is a method used to evaluate changes in financial data across time.
E) Is also called vertical analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis is a method used to evaluate changes in financial data across time. It compares financial data from one period to another (usually year over year) to identify trends and changes.

Horizontal Analysis