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The percentage analysis of increases in individual items in a single company's comparative financial statements is...

The percentage analysis of increases in individual items in a single company's comparative financial statements is called: A. Vertical analysis, B. Solvency Analysis, C. Profitability Analysis, D. Horizontal Analysis.

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Answer #1

Ans. Option D Horizontal analysis

Explanation: Horizontal analysis is a percentage increase or decrease in a particular item of financial statement from pervious year to current year.

*Vertical analysis of income statement shows the percentage of a particular item on net sales and balance sheet shows the percentage of a particular item on total assets.

*Solvency analysis measures the ability to pay the long term obligations of a company.

*Profitability analysis measures the ability to generate profit.

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