Horizontal analysis is also known as:
A)Liquidity analysis.
B)Trend analysis.
C)Revenue analysis.
D)Variance analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis,also called trend analysis,refers to studying the behavior of individual financial statement items over several accounting periods.These periods may be several quarters within the same fiscal year or they may be several different years.The analysis of a given item may focus on trends in the absolute dollar amount of the item or trends in percentages.

Horizontal Analysis Is Also Known As