Which of the following analysis are the two major techniques of common-size analysis?
A) Standard analysis and regression analysis
B) Receivable analysis and profitability analysis
C) Linear analysis and budget analysis
D) Horizontal analysis and vertical analysis

Question

Quizplus · Accepted Answer

Horizontal and vertical analysis are the two major techniques of common-size analysis. Horizontal analysis compares financial statements over consecutive periods, while vertical analysis involves expressing each item on a financial statement as a percentage of a base item.

Which of the Following Analysis Are the Two Major Techniques