Question : ------------ requires financial statements of two or more accounting periods.
Option 1: Horizontal Analysis
Option 2: Vertical Analysis
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
19th Jan, 2024
Correct Answer: Horizontal Analysis
Solution : Answer = Horizontal Analysis
The change in financial statements over two or more accounting periods is interpreted using a horizontal analysis. It shows the percentage change from the value of the baseline accounting period to the identical line item in the next accounting period.
Hence, the correct option is 1.
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