To analyze changes in a company's net income over the last ten years,you should perform:
A)horizontal analysis.
B)vertical analysis.
C)cross-section analysis.
D)ratio analysis.

Question

Quizplus · Accepted Answer

Horizontal (trend)analyses are conducted to help financial statement users recognize important financial changes that unfold over time.Horizontal analyses compare individual financial statement line items horizontally (from one period to the next),with the general goal of identifying significant sustained changes (trends).These changes are typically described in terms of dollar amounts and year-over-year percentages.

To Analyze Changes in a Company's Net Income Over the Last