Question

क्षैतिज विश्लेषण तथा लंबवत् विश्लेषण में अंतर कीजिए।
Distinguish between Horizontal Analysis and Ver​

Answer 1

Answer:

सारांश- क्षैतिज बनाम लंबवत विश्लेषण

क्षैतिज विश्लेषण लाइन विधि द्वारा एक लाइन को अपनाने से समय के साथ वित्तीय जानकारी की तुलना करता है। ऊर्ध्वाधर विश्लेषण वित्तीय जानकारी का उपयोग करके गणना की गई अनुपातों की तुलना करने पर केंद्रित है।

Answer 2

Answer:

Horizontal Analysis and Ver​tical Analysis

Explanation:

1. Horizontal Analysis is such type of analysis, financial statements for number of years are reviewed and analyzed.

• figures for two or more years are contained in such type of analysis and these figures are placed side by side to facilitate comparison.
• Such analysis indicates the increase or decrease in these items not only in absolute figures but also in percentage form.
• Thus, it involves making comparisons and establishing relationship among the related items of an enterprise for a number of years.
• It also helps in knowing the trend of the business.

 2. Vertical Analysis in which financial statements for a single year or on a particular date are reviewed and analyzed with help of proper devices like ratios.

• It involves a study of quantitative relationship among various items of Balance sheet or statement of profit and loss of a single period.

• The items in the financial statement are expressed as a percentage to total and the total is taken as equivalent to 100.

Difference between Horizontal Analysis and Ver​tical Analysis are as follows:

1. Horizontal analysis is also known as "Dynamic analysis" whereas vertical analysis is known as "Static analysis".
2. It does the analysis of financial statements for number of years where as vertical analysis does for a particular period of time.
3. Horizontal analysis helps in specifying the growth and decline phase whereas vertical analysis helps in knowing future proportion.
4. The items in horizontal analysis are expressed in absolute or in percentage form but vertical analysis expresses in ratio or percentage form.
5. Horizontal analyses needs comparative financial statements of 4 to 5 years  whereas vertical analysis need only one year financial statements.
6. Horizontal analysis used for time series analysis on the other hand vertical analysis used for inter firm analysis.

Thus, Horizontal analysis and vertical analysis are two different terms .

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