Horizontal analysis refers to
A) The trend of income from year to year of persons suspected of fraud.
B) Changes of financial statement numbers and ratios across several years.
C) Financial statement amounts expressed each year as a proportion of a base amount.
D) The change in a suspect's net worth from the beginning to the end of a period.

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial statement numbers and ratios over multiple years to identify changes or trends. A is referring to forensic accounting, C is describing vertical analysis, and D is referring to personal financial analysis, not accounting.

Horizontal Analysis Refers to