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What is the difference between horizontal and vertical analysis of financial statements?

Accounting

What is the difference between horizontal and vertical analysis of financial statements?

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Horizontal analysis is the percentage analysis of increases and decreases in corresponding statements. The percent change in the cash balances at the end of the pre-ceding year from the end of the current year is an example. Vertical analysis is the percentage analysis showing the relationship of the component parts to the total in a single statement. The percent of cash as a portion of total assets at the end of the current year is an example.