Question

the technique of taking first year figures as based and comparing with subsequent year is called_____
a. trend analysis
b. ratio analysis
c. common size statement
d. none of these​

Answer 1

Answer:

common size statement

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Answer 2

None of them, i.e. D, are the correct answers.

Horizontal analysis is used in financial statement analysis to examine historical data, such as ratios or line items, spanning a number of accounting periods. Horizontal analysis can utilize absolute or percentage comparisons, with the numbers in each succeeding period expressed as a percentage of the amount in the baseline year, with the baseline amount given as 100 percent. This is commonly known as base-year analysis.