Radcliffe McCoy is the financial manager for his company. He is comparing income statements from the past three years to see the trend (if any) in cost of goods sold and other expenses. Which of the following is he using?

Question

Quizplus · Accepted Answer

Radcliffe McCoy is using horizontal analysis because he is comparing income statements from the past three years to see the trend in cost of goods sold and other expenses over time. Horizontal analysis is also known as trend analysis and involves comparing financial data over a series of periods to identify any trends or changes in performance.

Radcliffe McCoy Is the Financial Manager for His Company