The analysis of percentage changes in comparative statements is known as:
A) economic value added analysis
B) benchmarking analysis
C) horizontal analysis
D) vertical analysis

Question

Quizplus · Accepted Answer

Horizontal analysis is used to compare financial information over a certain period of time to see the percentage changes in different categories. This type of analysis is particularly useful in identifying trends and changes in the financial health of a company over time. Economic value added analysis and benchmarking analysis are different types of financial analysis, while vertical analysis is used to compare financial information across different periods or categories.

The Analysis of Percentage Changes in Comparative Statements Is Known