Which of the following is an example of horizontal analysis?

Horizontal analysis involves comparing financial data over a series of periods to identify trends and growth patterns. This technique allows stakeholders to see how specific line items in financial statements have changed over time, facilitating the evaluation of financial performance and the detection of anomalies.

Comparative financial statements exemplify horizontal analysis as they present the same financial information across different periods side by side. This format permits easy comparison and highlights trends, variances, and changes in specific accounts, which is the hallmark of horizontal analysis.

The other options relate to different types of financial analysis. Gross profit margin refers to a profitability ratio and is more about current performance rather than changes over time. Vertical trend analysis provides insights into the proportion of line items relative to a base figure within a single period rather than comparing across periods. Base year analysis refers to assessing financial performance relative to a designated base year but does not always deal directly with data over multiple periods in the same comparative manner that horizontal analysis does.