The comparison of a company's financial condition and performance across time is known as:
A)Horizontal analysis.
B)Vertical analysis.
C)Political analysis.
D)Fair value reporting.
E)Liquidation analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing a company's financial information over a period of time, often by creating common-size financial statements or calculating financial ratios. This allows for an evaluation of the company's financial condition and performance over time. Vertical analysis involves comparing different financial statements within one period to evaluate the proportion or percentage of each item to a common factor. Political analysis, fair value reporting, and liquidation analysis are not related to comparing a company's financial condition and performance over time.

The Comparison of a Company's Financial Condition and Performance Across