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Horizontal analysis ______. Multiple choice question. identifies the relative contribution made by each financial statement line item is used to identify trends over time provides an understanding of the relationships among various items on financial statements

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ogorwyne

Horizontal analysis is used to identify trends overtime.

Horizontal analysis is also referred to as trend analysis. It is a situation whereby there is a comparison of financial statements to show performance over a given time period.

It helps by spotting financial trends over a specific period of time. The analysis is done horizontally over time periods unlike the vertical that is done vertically on the columns.

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