Question Details

Horizontal analysis is a technique for evaluating a series 





1.	The two major techniques for financial analysis are
a.	horizontal analysis and circular analysis.
b.	receivable analysis and profitability analysis.
c.	vertical analysis and budget analysis.
d.	common-size analysis and ratio analysis.


	

	2.	Horizontal analysis is also known as
a.	linear analysis.
b.	vertical analysis.
c.	trend analysis.
d.	budget analysis.


	

	3.	Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
a.	that has been arranged from the highest amount to the lowest amount.
b.	that has been arranged from lowest amount to the highest amount.
c.	to determine which items are in error.
d.	to determine the amount and/or percentage increase or decrease that has taken place.


	

	4.	In horizontal analysis, each item is expressed as a percentage of the
a.	retained earnings figure.
b.	total assets figure.
c.	net income figure.
d.	base year figure.


	
	5.	In vertical analysis, line items on the balance sheet are generally expressed as a percentage of
a.	total liabilities.
b.	net income.
c.	total assets.
d.	cost of goods sold.





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