Horizontal Analysis Is the Comparison Of

question 1

Multiple Choice

Horizontal analysis is the comparison of:

• A)stakeholders' equity values for each owner in the same financial year.
• B)sales figures of different divisions of a firm over one financial quarter.
• C)reported account values of two different firms in the same financial year.
• D)account values reported on financial statements over two or more years.

---

Definitions:

Capacity Utilization

A measure of how effectively an entity uses its production capacity to produce goods, expressed as a percentage of total potential output.

Cyclical Industry

An industry highly sensitive to the economic cycle, experiencing rapid growth in booming economies and significant declines during recessions.

Automobile Industry

The automobile industry encompasses the wide range of companies and activities involved in the design, manufacturing, marketing, and selling of motor vehicles.

Tobacco Industry

Comprises companies and entities that manufacture, market, and distribute tobacco and tobacco-related products.