The analysis that calculates both the absolute and percentage change in each account balance on a financial statement is called:

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The analysis that calculates both the absolute and percentage change in each account balance on a financial statement is called horizontal analysis. Vertical analysis calculates each item as a percentage of a base amount, such as net sales, and is used to analyze changes within a single period. Solvency analysis focuses on a company's ability to meet its long-term financial obligations, while profitability analysis evaluates a company's ability to generate profits.

The Analysis That Calculates Both the Absolute and Percentage Change