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    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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