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Question 5 (1 point) 5. Horizontal analysis is analysis O of dollar changes and percentage changes over two or more years. O
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Answer #1

Ans: of dollar changes and percentage changes over two or more years

Explanation:

1) Horizontal analysis compares the changes in dollar amount and changes in percentage

2) Steps of Horizontal Analysis:

  • find dollar change from year to year
  • divide the change by base year

3) If we go by steps only option ( a) defines horizontal analysis correctly.

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