Ryan Company analyzed its financial statements for the year ended December 31.During its analysis,Ryan Company compared the accounts receivable balance from 2014 to 2013.This type of analysis is called:

Question

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The type of analysis performed by Ryan Company is a comparison of accounts over time, specifically looking at the accounts receivable balance from two consecutive years. This type of analysis is called a longitudinal comparison, making option D the correct answer. Cross-sectional comparison (option A) compares accounts between different companies or industries, while sectional comparison (option B) and account comparison (option C) are not commonly used terms in financial analysis.

Ryan Company Analyzed Its Financial Statements for the Year Ended