Which of the Following Statements Is True Regarding Horizontal Analysis

question 137

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 an earlier year amount.

---

Definitions:

Slate

A fine-grained, foliated metamorphic rock derived from shale, characterized by its ability to split into thin, durable layers, commonly used in roofing and flooring.

Fault Scarp

A step in the landscape caused when fault movement offsets Earth’s surface.

Columnar Joints

Distinctive polygonal shapes formed in volcanic rock due to contraction as it cools, creating pillar-like formations.

Cleavage

The tendency of a mineral to break along flat, even surfaces as determined by the structure of the mineral’s crystal lattice.