Statements regarding a horizontal analysis

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Reference no: EM13147537

All the following statements regarding a horizontal analysis are true EXCEPT:

a. A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.

b. A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.

c. If fees Earned in 2009 is $150,000 and fees earned in 2010 is $187,500, a horizontal analysis will indicate a 25% increase over this period.

d. When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

Reference no: EM13147537

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