Horizontal Analysis

question 115

Multiple Choice

Horizontal analysis:

• A)is used to identify trends over time.
• B)identifies the relative contribution made by each financial statement line item.
• C)provides an understanding of the relationships among various items on financial statements.
• D)involves comparing amounts across different financial statements.

---

Definitions:

Probability Models

Mathematical representations that describe real-world processes or phenomena in terms of probability.

Understand Risk

The process of identifying, assessing, and prioritizing potential risks to minimize their impact on objectives.

Statistical

Relating to or involving the use of statistics to collect, analyze, interpret, and present data.

Diagnostic Analytics

Diagnostic analytics is the process of examining data to understand the reasons behind past performance, focusing on identifying patterns, correlations, and cause-effect relationships.