Correct Answer: Both 1 and 2

Solution : Answer = Both 1 and 2

1. Horizontal analysis: These are sometimes referred to as static analysis and active time analysis series. It is necessary to exhibit both positive and negative item counts in the statement of two periods in order to demonstrate true growth and amount of deficiencies.
2. Vertical analysis: Static analysis is another name for vertical analysis, often known as fixed analysis. In this case, the ratio analysis data are from a given time frame.
Hence, the correct option is 3.