Question Details

Another name for horizontal analysis is trend analysis


TRUE-FALSE STATEMENTS
1. Another name for horizontal analysis is trend analysis.
2. If a company has sales of $110 in 2001 and $154 in 2002, the percentage increase in
sales from 2001 to 2002 is 140%.
3. In horizontal analysis, if an item has a negative amount in the base year, and a positive
amount in the following year, no percentage change for that item can be computed.
4. Vertical analysis is a technique for evaluating a series of financial statement data over a
period of time to determine the increase (decrease) that has taken place.
5. Common size analysis expresses each item in a financial statement as a percent of a
base amount.


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