Practicing Success
What is the name of the analysis that is made to review and analyse the financial statements for a number of years? |
Cash Flow Analysis Vertical Analysis Horizontal Analysis None of these |
Horizontal Analysis |
The correct answer is option 3- Horizontal Analysis. In Horizontal Analysis, the company’s financial statements are made to review for several years, and it is also called a long-term analysis. It is useful for long-term planning and compares figures of two or more years. |