1. Horizontal analysis is a technique for evaluating financial statement data a) within a period of time. b) over a period of time, c) on a certain date. d) as it may appear in the future. 2. A horizontal analysis is being conducted with year one as the base year. If year one equals $900, year two equals $960, and year three equals $995, the percentage of the base period for year three is: a) 89%. b) 100% c) 106% d) 111%. 3. Assume the following sales data for a company: 2022 $2,800,000 2021 2,500,000 2020. 2,100,000 2019. 1,900,000 What is the percentage increase in sales from 2021 to 2022? a) 11% b) 88% c) 12% d) 47% 4. In horizontal analysis, each item is expressed as a percentage of the a) retained earnings amount. b) total assets amount. c) net income amount. d) base year amount