Financial Statement Analysis: Horizontal & Vertical Analysis Study Guide

Page 1 of 50 Financial Statement Analysis _ Horizontal & Vertical Analysis Study Guide 11/13/2026, 1:47:24 AM




Financial
Statement Analysis
| Horizontal &
Vertical Analysis
Study Guide




Financial Statement Analysis _ Horizontal & Vertical Analysis Study Guide.pdf
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,Page 2 of 50 Financial Statement Analysis_ Horizontal and Vertical Analysis 11/13/2026, 1:47:24 AM




Terms (108)

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What is the purpose of financial statement analysis in
controllership?


To systematically examine relationships, changes, and patterns
in financial statement information to support evaluation and
decision-making.




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What are the two basic types of analysis used in financial
statement analysis?


Horizontal analysis and vertical analysis.


What does horizontal analysis compare?


Financial statement data across two or more periods.




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What does vertical analysis involve?


Analyzing financial statement items as a percentage of a base
figure within the same period.




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