Horizontal analysis is analysis in which

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Reference no: EM131205514

1. financial statement lines are expressed as a percent of the base (earliest) year.

2. all items are presented as a percentage of one selected item on the financial statement.

3. a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.

4. ratio increases and decreases are presented for the past two accounting periods.

Reference no: EM131205514

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