A company may compare the amount of receivables in the current year to the amount of receivables in the previous year to estimate a trend in the company's ability to collect cash from customers. This type of analysis is known as:

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This type of analysis, where data from different periods are compared to identify trends, is known as horizontal analysis. Other types of analysis include vertical analysis (where data from one period are expressed as a percentage of a base amount, such as total assets or sales), time analysis (where data are analyzed over a series of time periods, such as monthly or quarterly), and turnover analysis (where ratios are used to assess the efficiency of a company's operations, such as the receivables turnover ratio).

A Company May Compare the Amount of Receivables in the Current