Question: Statement I: Horizontal analysis includes analysis of absolute and relative changes on the financial statement. Statement II: Financial statement analysis consists of horizontal analysis, trend

Statement I:

Horizontal analysis includes analysis of absolute and relative changes on the financial statement.

Statement II:

Financial statement analysis consists of horizontal analysis, trend analysis, and vertical analysis.

a.Statement 1 is incorrect; statement 2 is correct
b.Both statements are correct
c.Statement 1 is correct; statement 2 is incorrect
d. Both statements are incorrect

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