Horizontal analysis is also known as
A) linear analysis.
B) vertical analysis.
C) trend analysis.
D) budget analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis compares a company's financial performance over a period of time, looking for trends or changes. Therefore, it is also called trend analysis. Linear analysis and budget analysis are not commonly used terms in accounting, and vertical analysis involves comparing financial statement items to a base number, such as total assets, rather than looking for changes over time. Therefore, C is the best choice.

Horizontal Analysis Is Also Known as