Horizontal analysis involves the study of:
A) the changes in individual financial statement amounts as a percentage of some related total
B) percentage changes in various financial statement amounts from year to year
C) the change in key financial statement ratios over a certain time frame or horizon
D) the relationship of one financial statement amount to another in the same year

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing financial statement amounts from year to year and calculating the percentage change between those amounts. This allows for an analysis of the trends and changes in the company's financial performance over time.

Horizontal Analysis Involves the Study Of