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Horizontal analysis compares a financial statement line item in the current year with the same line...

Horizontal analysis compares a financial statement line item in the current year with the same line item in the prior year. T/F
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A horizontal analysis of financial statements compares each line item in the financial statement with the corresponding line item in the prior period financial statements. It thus evaluates the trend, increasing or decreasing in the line item over a period of time and is hence also known as trend analysis.

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