Ask Question
12 October, 07:04

A) What type of analysis is indicated by the following?

Increase (Decrease)

Current Year Preceding Year Amount Percent

Current assets $ 430,000 $ 500,000 $ (70,000) (14%)

Fixed assets 1,740,000 1,500,000 240,000 16%

Group of answer choices:

O horizontal analysis

O liquidity analysis

O common-size analysis

O vertical analysis

+1
Answers (1)
  1. 12 October, 07:06
    0
    horizontal analysis

    Explanation:

    The example of the given question is shown below:-

    = ($430,000 - 1,740,000) : 5,00,000

    = 14%

    Horizontal analysis is also known as trend analysis. It is a financial statement that changes the amount in favor of items of financial statements over time of period. In the financial statement, it is used for the statement of two or more periods. It provide us that how much is increasing or decreasing from one period to another.

    So by above calculation we can reflect horizontal analysis.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A) What type of analysis is indicated by the following? Increase (Decrease) Current Year Preceding Year Amount Percent Current assets $ ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers