Asked by Savannah Calkins on Jun 16, 2024
Verified
If a company is comparing this year's financial performance to last year's financial performance,it is using horizontal analysis.
Horizontal Analysis
Financial analysis technique that compares account values reported on financial statements over two or more periods to identify trends and growth patterns.
- Understand the basic principles and tools of financial statement analysis.
- Identify and apply horizontal and vertical analysis techniques.
Verified Answer
AB
Adriana BoskovskiJun 18, 2024
Final Answer :
True
Explanation :
Horizontal analysis compares financial data from one period to another period, usually a previous year, to assess changes or trends in the company's financial performance.
Learning Objectives
- Understand the basic principles and tools of financial statement analysis.
- Identify and apply horizontal and vertical analysis techniques.
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