The primary focus of horizontal analysis is:
A)percentage changes in line items from comparative financial statements.
B)the balance sheet only.
C)the amount of individual financial statement line items as a percentage of some related total,such as total assets.
D)the income statement only.

Question

Quizplus · Accepted Answer

The primary focus of horizontal analysis is to compare percentage changes in line items from comparative financial statements. This helps to identify trends or changes in performance over time by comparing the same line items from one period to another.

The Primary Focus of Horizontal Analysis Is