A financial analysis technique used to evaluate a company's performance over time
Correct answer: B. Horizontal Analysis
- A. Common Size Analysis
- B. Horizontal Analysis
- C. Vertical Analysis
- D. None of the Above
Explanation
Horizontal analysis compares financial statement figures across successive periods, making it useful for measuring performance trends over time. Common-size and vertical analysis usually express items as percentages within one period or statement.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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