Horizontal Analysis Is Used to Analyze Trends in Financial Statement

question 37

Multiple Choice

Horizontal analysis is used to analyze trends in financial statement data over time:

• A)For one company
• B)Between two companies
• C)Across an industry

---

Definitions:

Budget Committee

A group of individuals responsible for overseeing the development, implementation, and review of an organization's budget.

Budgeted Balance Sheet

A financial statement projected for the future that shows the company's assets, liabilities, and equity.

Previous Year's Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity as of the end of the preceding fiscal year.

Accounting Responsibilities

The duties and tasks associated with managing and recording a company's financial transactions, ensuring compliance with accounting laws and standards.