Horizontal analysis is performed when:
a. total assets are set at 100% and all other balances are a percentage of total assets.
b. the percentage change in the balance sheet and income statement numbers is computed for one period to the next.
c. there is a need to calculate and compare key ratios from period to period.
d. income statement amounts are shown as a percentage of total sales.
b
FEEDBACK: a. Incorrect.
b. Correct.
c. Incorrect.
d. Incorrect
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