What type of analysis is illustrated in the following table?
$$\begin{array} { | l | r | r | r | r | }
\hline \text { Account } & 2007 & 2006 & \text { Change Amount } & \text { Change Percent } \
\hline \text { Current assets } & \$ 130,000 & \$ 100,000 & \$ 30,000 & 30.0 \% \
\hline \text { Accounts receivable } & 114,000 & 120,000 & - 6,000 & - 5.0 \% \
\hline
\end{array}$$
A) The table illustrates capital analysis.
B) The table illustrates horizontal analysis.
C) The table illustrates ratio analysis.
D) The table illustrates vertical analysis.

Question

What type of analysis is illustrated in the following table?
$$\begin{array} { | l | r | r | r | r | } 
\hline \text { Account } & 2007 & 2006 & \text { Change Amount } & \text { Change Percent } \
\hline \text { Current assets } & \$ 130,000 & \$ 100,000 & \$ 30,000 & 30.0 \% \
\hline \text { Accounts receivable } & 114,000 & 120,000 & - 6,000 & - 5.0 \% \
\hline
\end{array}$$
A) The table illustrates capital analysis.
B) The table illustrates horizontal analysis.
C) The table illustrates ratio analysis.
D) The table illustrates vertical analysis.

Quizplus · Accepted Answer

Horizontal analysis compares financial data over time, typically by showing changes in amounts and percentages from one period to the next, as seen in the table.

What Type of Analysis Is Illustrated in the Following Table