Detecting variances in data for current assets and liabilities is an important step in financial analysis and management. It helps identify unusual patterns, trends or discrepancies that could require further investigation. 3 tools/methods I will explain are horizontal analysis, vertical analysis and variance analysis. The purpose of a horizonal analysis is to compare financial data over multiple periods. This helps identify trends over time for each component of current assets (inventories, receivables) and current liabilities (payables). On the other hand, the purpose of a vertical analysis is to assess the relative proportion of each line item within the financial statements. This identifies the structure of the assets and liabilities and how each item contributes to the total, it is useful for spotting abnormal shifts in distribution. Variance analysis is used to compare actual figures to budgeted or expected figures. This is used to identify deviations from planned performance for both current assets and liabilities, helping management make more informed decisions. - does this make sense