If a Company Is Comparing This Year's Financial Performance to Last

question 185

True/False

If a company is comparing this year's financial performance to last year's financial performance, it is using horizontal analysis.

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Definitions:

Balance Per Books

The amount of money reported in a company's financial records or books.

Bank Reconciliation

The practice of ensuring that the figures in an organization's financial records for a cash account are in agreement with the relevant details on a bank statement.

Balance Per Bank

The amount of money in a company's bank account according to the bank's records at a specific point in time.

Bank Reconciliation

The procedure of reconciling the balance figures in a firm's accounting ledger for a cash account with the associated entries on a bank statement.