Which of the following is a type of horizontal analysis?

Linear trend analysis is a type of horizontal analysis because it focuses on evaluating financial data over a specific period to identify patterns or trends. With linear trend analysis, financial figures from multiple time periods are compared to discern growth or decline in performance. This approach allows businesses to visualize changes over time, which can be essential for forecasting future performance and making informed business decisions.

Horizontal analysis itself involves comparing financial statements from different periods to assess growth patterns and trends in key financial metrics. In this context, linear trend analysis fits into the broader category of horizontal analysis as it methodically examines the numerical changes along a timeline, helping stakeholders understand the direction and momentum of financial performance.