Question : …………. financial statement analysis is dynamic.
Option 1: Vertical analysis
Option 2: Horizontal analysis
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Horizontal analysis
Solution : Answer = Horizontal analysis
Financial statement analysis that is dynamic: A financial statement analysis that spans multiple years is referred to as dynamic analysis of financial statements. Horizontal analysis is another name for dynamic analysis. Hence, the correct option is 2.
Question : …………….. analysis of financial statement is based on one year data.
Question : ---------- requires a financial statement of one period.
Option 1: Horizontal Analysis
Option 2: Vertical Analysis
Question : Financial statement analysis is not free from……………..bias.
Option 1: Personal
Option 2: Non personal
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