The study of an individual item or account over several periods in the same financial year or over many years is known as:
A)Liquidity analysis
B)Ratio analysis
C)Vertical analysis
D)Horizontal 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.

The Study of an Individual Item or Account Over Several