Horizontal Analysis

Multiple Choice

Horizontal analysis:

A) is exactly the same as "vertical analysis".
B) refers to the development of percentages indicating the proportionate change in the same item over time.
C) is useful for balance sheet but not for income statement.
D) involves the expression of each item on a particular period's financial statements as a percent of one specific item which is referred to as a base.
E) None of these choices are correct.