If an analyst wishes to see how operating expenses of a company have changed from one year to the next,using a horizontal analysis would be the best approach.

Question

Quizplus · Accepted Answer

Horizontal analysis compares data from one period to another to show the percentage change or increase/decrease in a particular financial statement item. Therefore, it is a suitable approach to analyze how operating expenses of a company have changed from one year to the next.

If an Analyst Wishes to See How Operating Expenses of a Company