Question: Statement 1:In horizontal analysis, the base year can be the immediately preceding period, or it can be a period further in the past. Statement 2:In

Statement 1:In horizontal analysis, the base year can be the immediately preceding period, or it can be a period further in the past. Statement 2:In vertical analysis of the income statement, net income is represented as 100%.

A. Both statements are true

B. Both statements are false

C. Only statement 1 is true

D. Only statement 2 is true

Please provide a comprehensive explanation for your answer.

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