Question

What type of analysis is indicated by the following? Increase (Decrease) Year 2 Year 1 Amount Percent Current assets $380,000 $400,000 $(20,000) (5)% Fixed assets 1,680,000 1,500,000 180,000 12%

Answer 1

Horizontal Analysis

Step-by-step explanation:

Horizontal analysis can be seen as the type of analysis that effectively and efficiently carryout comparison of a company or an organisation account balance as well as the company ratio which is why HORIZONTAL ANALYSIS is essential and vital for the success of a company or an organisation because it enables the company to know how well they are doing financially or to enable the company know whether they are making profit or loss. EXAMPLE Horizontal analysis occur when a company or an organisation compare their sales in year 1 with that of their sales is year 2.