Question 11 of 20

5.0 Points
The percentage analysis of changes of corresponding items in comparative financial statements is referred to as horizontal analysis.
A. True
B. Fals

A

correct

The correct answer is A. True.

To arrive at this answer, you can use the following steps:
1. Understand the question: The question is asking whether the percentage analysis of changes in corresponding items in comparative financial statements is referred to as horizontal analysis.
2. Familiarize yourself with the topic: Horizontal analysis involves comparing financial information from different periods to identify and analyze changes in various items over time.
3. Analyze the statement: The statement is saying that the percentage analysis of changes in corresponding items is referred to as horizontal analysis. If this statement aligns with your understanding of horizontal analysis, then the answer would be true.
4. Consider alternate possibilities: Consider whether there might be any other terms or concepts that could be used to describe the percentage analysis of changes in corresponding items. If there are no significant alternatives, then the answer is likely true.
5. Choose the correct answer: Based on your analysis, choose the option that aligns with your understanding. In this case, since the statement accurately describes horizontal analysis, the correct answer is A. True.