Horizontal Analysis Is Analysis

question 185

Multiple Choice

Horizontal analysis is analysis

• A) of percentage changes over several years.
• B) in which all items are presented as a percentage of one selected item on a financial statement.
• C) in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
• D) of all ratios that increased or decreased over past accounting periods.

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Definitions:

Tax Revenue

Money collected by governments through the imposition of taxes.

Widgets

A generic term often used to refer to any product, especially a hypothetical one used for economic or teaching purposes.

Tax

A mandatory monetary fee or another form of charge levied on a taxpayer by a government body to finance government operations and various public expenses.

Elastic

Describes a situation in which the demand or supply of a good or service is highly sensitive to changes in price.