A financial analysis technique used to evaluate a company’s performance over time
ANone of the Above
BHorizontal Analysis
CCommon Size Analysis
DVertical Analysis
Correct answer
B. Horizontal Analysis
Explanation
Horizontal analysis is a financial analysis technique used to evaluate a company’s performance over time. By comparing prior-period financial results with more current financial results, a company is better able to spot the direction of change in account balances and the magnitude in which that change has occurred.