Select the Incorrect Statement Regarding Horizontal Analysis

question 51

Multiple Choice

Select the incorrect statement regarding horizontal analysis.

• A)Percentage analysis involves establishing the relationship of one amount to another.
• B)In doing horizontal analysis,an account is expressed as a percentage of the previous balance of the same account.
• C)A horizontal analysis of cost of goods sold on the income statement includes dividing net income by total revenue.
• D)Percentage analysis attempts to eliminate the materiality problem of comparing firms of different sizes.

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