Question

Horizontal analysis evaluates a series of financial statement data over a period of time:

A. that has been arranged from the highest number to the lowest number.
B. to determine which items are in error.
C. to determine the amount and/or percentage increase or decrease.
D. that has taken place that has been arranged from the lowest number to the highest number.

Answer 1

Answer:

C. to determine the amount and/or percentage increase or decrease.

Explanation:

Horizontal analysis is a method used in financial statement analysis to compare financial ratios, or line items, over a number of accounting periods.

Financial information can be compared with a benchmark.

By making this comparison, one can determine if financial information been compared have increased or deceased.

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