Horizontal analysis of financial statements is an:
A) analysis tool.
B) analysis theory
C) analysis principle.
D) analysis requirement.

Question

Quizplus · Accepted Answer

Horizontal analysis is a financial analysis tool used to compare financial data over a number of reporting periods to identify trends and changes. Therefore, option A is the correct answer. Option B, C, and D are not applicable as horizontal analysis is not a theory, principle, or requirement, but it is a financial analysis tool.

Horizontal Analysis of Financial Statements Is An