Question : ___________ analysis is considered as static?
Option 1: Internal Analysis
Option 2: Vertical Analysis
Option 3: External Analysis
Option 4: Horizontal Analysis
Correct Answer: Vertical Analysis
Solution : Answer = Vertical Analysis
Static analysis, another name for vertical analysis, is a subset of financial statement analysis. It entails examining how different items relate to one another inside a financial statement for a certain accounting period.
Hence, the correct option is 2.