Which type of analysis compares information contained in a firm's financial statements over a period of two or more years?
A) vertical analysis
B) horizontal analysis
C) profitability analysis
D) ratio analysis

Question

Quizplus · Accepted Answer

Horizontal analysis, also known as trend analysis, compares financial information over multiple years to identify changes and trends in a company's performance. Vertical analysis compares the relative proportion of different line items within a single year's financial statements. Profitability analysis and ratio analysis are more specific types of analysis that focus on a company's profitability and financial ratios, respectively.

Which Type of Analysis Compares Information Contained in a Firm's