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      Question

      Observing changes in the financial variables across the

      years is ________ย 
      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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