Which of the Following Statements Is True Regarding Horizontal Analysis

question 73

Multiple Choice

Which of the following statements is true regarding horizontal analysis?

• A) It can only be used with balance sheet accounts.
• B) It can only be used with income statement accounts.
• C) It expresses each financial statement line item as a percent of the largest amount on the statement.
• D) It expresses each financial statement line item as a percent of the earliest year amount.

---

Definitions:

Sensory Deficit

A reduction or impairment in the ability to perceive stimuli through one's senses, such as sight, hearing, smell, taste, or touch.

Voluntary Action

Actions that are performed as a result of conscious choice or decision, under the control of an individual's will.

Somatosensory Cortex

A region of the brain that processes sensory input from various body parts, contributing to our sense of touch, temperature, and body position.

Motor Cortex

The region of the cerebral cortex involved in the planning, control, and execution of voluntary movements.