Which of the following is the definition of horizontal analysis?
A) Horizontal analysis is the study of percentage changes in comparative financial statements.
B) Horizontal analysis is the analysis of a financial statement that reveals the relationship of each statement item to a specified base, which is the 100% figure.
C) Horizontal analysis is the practice of comparing a company with other companies that are leaders.
D) None of the above is a definition of horizontal analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing financial statements over different periods to identify trends and growth patterns, typically by calculating percentage changes in line items from one period to the next.

Which of the Following Is the Definition of Horizontal Analysis