Answer:
The answer is d.uses the earlier income statement as the base for computing percentage changes.
Explanation:
Horizontal analysis is used in the review of a company's financial statements over multiple periods.
Answer:
The correct answer is letter "D": uses the earlier income statement as the base for computing percentage changes.
Explanation:
Horizontal Analysis compares a company's Balance Sheet or Income Statement over two or more accounting periods. The earliest Income Statement will be considered as the base for comparing changes over the firm's performance in other years. It is called horizontal analysis because it displays numbers in rows, side by side, where changes are clear to see.
