Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
In the analysis of the financial statements of a company, what is another name for Horizontal Analysis?
Options:
Structural Analysis
Static Analysis
Dynamic Analysis
None of these
Correct Answer:
Dynamic Analysis
Explanation:
Horizontal analysis is termed as dynamic analysis. Vertical analysis is done to review and analysis the financial statements for a year only and therefore it is also called static analysis.