Question : Choose which of the following statements is correct?
Option 1: Horizontal Analysis requires financial statements of two or more accounting periods.
Option 2: Vertical Analysis requires financial statement of one period.
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
1. Horizontal Analysis requires financial statements of two or more accounting periods. 2. Vertical Analysis requires the financial statement of one period. Hence, the correct option is 3.
Question : ------------ requires financial statements of two or more accounting periods.
Option 1: Horizontal Analysis
Option 2: Vertical Analysis
Question : ---------- requires a financial statement of one period.
Question : …………. financial statement analysis is dynamic.
Option 1: Vertical analysis
Option 2: Horizontal analysis
Question : Horizontal analysis reviews and analyses financial statements of ………….
Option 1: Ignores price level changes
Option 2: Two or more accounting period
Option 3: Either 1 and 2
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