Applying Horizontal Analysis Methods

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following statements describes how to conduct a horizontal analysis?

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1. What are assets?

2. What are liabilities?

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About This Quiz & Worksheet

Horizontal analysis is an important tool in understanding the growth of a business. This quiz and worksheet combination will assess your understanding of this form of analysis, including the terms associated with it.

Quiz & Worksheet Goals

These assets will check your knowledge of the following:

  • What horizontal analysis means
  • Defining assets, liabilities, and expenses
  • What horizontal analysis can tell you

Skills Practiced

These assets will allow you to practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on horizontal analysis
  • Defining key concepts - ensure that you can accurately define main phrases, such as assets and liabilities
  • Information recall - access the knowledge you've gained regarding interpreting the results of horizontal analysis

Additional Learning

For more information on horizontal analysis, review the accompanying lesson called Applying Horizontal Analysis Methods. This lesson will cover the following objectives:

  • Discussing what information horizontal analysis can provide
  • Explaining how a balance sheet and income statement are used
  • Providing an explanation of how to use this information to learn more about a business
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