Question

Which of the following statements are false?
A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis.
B) When financial statements of several years are analyzed, it is termed as vertical analysis.
C) Vertical Analysis is also termed as dynamic analysis.

• A. Both A and B
• B. Both A and C
• C. Both B and C
• D. A, B and C

Answer 1

The correct option is B Both A and C

Statements are A and C are false.

A) False. When all figures in the balance sheet are stated as percentage of the total, its termed as vertical or common-size analysis.

C) False. Horizontal analysis is termed as dynamic analysis.Vertical analysis is done to review and analysis the financial statements for a year only and therefore it is also called static analysis.