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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 None of the above Correct Answer Incorrect Answer

    Solution

    Horizontal analysis is a financial analysis technique that compares financial data of a company across different years to observe changes and growth trends. It is also called trend analysis. The technique compares the financial variables such as revenue, expenses, assets, liabilities, and profits of a company over a certain period of time to identify trends and patterns.

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