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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is horizontal analysis?
💡 Hint: Focus on the comparison aspect.
Question 2
Easy
Define comparative financial statements.
💡 Hint: Think of year-to-year comparisons.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does horizontal analysis primarily involve?
- Comparing financial data from different periods
- Analyzing data from a single period
- Using ratios for analysis
💡 Hint: Recall that it deals with time-based comparisons.
Question 2
True or False: Horizontal analysis only focuses on the current year’s data.
- True
- False
💡 Hint: Think about the nature of the analysis.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If a company's net profit for the years 2021, 2022, and 2023 were ₹1,00,000, ₹1,50,000, and ₹2,00,000, create a horizontal analysis and suggest two actions the company might take based on these findings.
💡 Hint: Calculate the growth and consider strategic responses to positive trends.
Question 2
Analyze a scenario where a company’s sales decreased from ₹2,00,000 in 2021 to ₹1,50,000 in 2022. Propose recommendations based on your horizontal analysis.
💡 Hint: Focus on identifying the cause of the decline and target areas for improvement.
Challenge and get performance evaluation