Which of the following would be most likely to reveal that cost of goods sold increased by $75,000 from 2013 to 2014?

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data from different periods for the same company, which would show the change in cost of goods sold from one year to the next. Trend analysis looks at performance over a longer period of time, and vertical analysis analyzes the components of financial statements as a percentage of a base item, so neither would directly show the change in cost of goods sold. Ratio analysis uses financial ratios to evaluate performance, but would not necessarily show the specific increase in cost of goods sold.

Which of the Following Would Be Most Likely to Reveal