Which of the Following Statements About Horizontal Analysis Is Correct

question 31

Multiple Choice

Which of the following statements about horizontal analysis is correct?

• A) it requires a minimum of 3 years of data to provide meaningful analysis.
• B) it compares numbers reported on a financial statement to others on the same statement.
• C) it compares numbers reported on the financial statements in the current period with those from the previous period.
• D) it determines the profitability of an entity.

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Definitions:

Second Trimester

The middle period of pregnancy, often considered from the 13th to the 26th week.

Edema

Swelling caused by excessive fluid accumulation in body tissues, often seen in limbs, abdomen, or facial areas.

Miscarriage

The spontaneous expulsion of the fetus from the uterus before 20 weeks of pregnancy. Also referred to as pregnancy loss or spontaneous abortion.

Embryo

The early developmental stage of a multicellular organism following fertilization and prior to fetal development.