Question

Radcliffe McCoy is the financial manager for his company. He is comparing income statements from the past three years to identify trends in the cost of goods sold and other expenses. He is using the comparative study of _____. a. Anscombe's quartet b. spatial distribution c. horizontal analysis d. pareto analysis

Answer 1

Answer: Option C

Explanation: In simple words, horizontal analysis refers to a financial statement technique under which the analyst compares the data from two or more years. It is usually used to evaluate and identify the trends.

In the given case, Radcliffe is comparing the performance from past three years for identifying trends.

Hence from the above we can conclude that Radcliffe is using horizontal analysis.