Horizontal Analysis: The technique, used to analyze the trends in a financial statements item over the period is called horizontal analysis. It presents the change in a particular item for more than two or two time periods. It is a type of financial statement analysis and also used to estimate the future amount of financial statements items.
Income Statement: A part of financial statements that lists the income and expenses of the business for an accounting year is called income statement. It is prepared at the end of the accounting period to know the profitability of a business. All the expenses are listed on the debit side and the income or revenues are listed on the credit side. The difference between both sides is called net
To Identify: The item that would be reported as per a horizontal analysis of L Company’s balance sheet.
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Chapter 17 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
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