Question

Observing changes in the financial variables across the years is ________ 

A Vertical Analysis Correct Answer Incorrect Answer
B Horizontal Analysis Correct Answer Incorrect Answer
C Peer-Firm Analysis Correct Answer Incorrect Answer
D Industry Analysis Correct Answer Incorrect Answer
E Panel Analysis Correct Answer Incorrect Answer

Solution

Horizontal analysis is an approach used to analyze financial statements by comparing specific financial information for a certain accounting period with information from other periods.

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