Question

17 horizontal analysis: 2.5 points 00:53:39 ebook multiple choice is a method used to evaluate changes in financial data across time. is also called vertical analysis. is the presentation of financial ratios. is a tool used to evaluate financial statement items relative to industry statistics. evaluates financial data across industries.

Explanation:

• Option A: Horizontal analysis (also called trend analysis) compares financial data over time periods to show growth/decline, so this is correct.
• Option B: Vertical analysis is different (expresses items as % of a base), so incorrect.
• Option C: Horizontal analysis is about time - series comparison, not just presenting ratios, incorrect.
• Option D: Evaluating against industry stats is benchmarking, not horizontal analysis, incorrect.
• Option E: Horizontal analysis is within a company over time, not across industries, incorrect.

Answer:

A. Is a method used to evaluate changes in financial data across time.