Home › CUET UG › accountancy › Analysis of Financial Statements › Horizontal analysis is so named because it:
Horizontal analysis is so named because it:
Astudies only the balance sheet
Bignores previous years entirely
Cexpresses items as a percentage of a base in a single period
Dcompares figures of an item across different time periods, side by side
Answer & Solution
Correct answer: D. compares figures of an item across different time periods, side by side
Horizontal analysis lines up an item's figures across time periods for side-by-side comparison.
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