Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
At the time of analysis of the financial statements of a company, Vertical Analysis is also known as:
Options:
Dynamic Analysis
Static Analysis
Structural Analysis
None of these
Correct Answer:
Static 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.