Why is horizontal analysis performed only on the income statement and balance sheet, but not on the statement of…

Why is horizontal analysis performed only on the income statement and balance sheet, but not on the statement of…

Question:

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Why is horizontal analysis performed only on the income statement and balance
sheet, but not on the statement of cash flows?
A. When searching for fraud, examining the statement of cash flows is not as effective
as comparing actual changes in account balances.
B.
Horizontal analysis converts balance sheet and income statement to change
statements whereas the statement of cash flow is already a change statement.
C. The statement cash flow of cash flows does not provide any valuable fraud-related
information.
D. Horizontal analysis of balance sheets and income statements is relatively easy,”
applying the same procedure to the statement cash flows is complicated.
Min
while

Expert Answer:

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer B Horizontal analysis converts b
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