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Which one of the following analysis is considered as a dynamic analysis? - Accounts

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MCQ

Which one of the following analysis is considered as a dynamic analysis?

Options

  • Vertical analysis

  • Horizontal analysis

  • Internal analysis

  • External analysis

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Solution

Horizontal analysis

Explanation:

Horizontal analysis is considered as a dynamic analysis. It interprets the change in financial statements over two or more accounting periods based on the historical data.

Concept: Liquidity Ratios
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