The fact that cost of goods sold decreased by 20% from 2016 to 2017 would most likely be revealed by:

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial statements for different periods side by side to identify changes in specific line items. Therefore, it would be the best choice for revealing the decrease in cost of goods sold between 2016 and 2017. Trend analysis looks at data over a longer time period, vertical analysis compares different items on the same financial statement, and ratio analysis involves using ratios to analyze financial performance.

The Fact That Cost of Goods Sold Decreased by 20