In Horizontal Analysis

question 74

Multiple Choice

In horizontal analysis

• A)changes in a company's operating results and financial position over time are expressed in percentages as well as dollars
• B)monetary relationships between items on the financial statements of a period are expressed in percentages as well as dollars
• C)financial statements are expressed only in percentages
• D)liquidity ratios, generally involving components of the company's working capital, are computed

---

Definitions:

Social Change

The transformation of culture, behavior, social institutions, and social structure over time, often seen as a necessary aspect of societal progress or development.

Emergent Norm Theory

A sociological hypothesis that posits individuals in a crowd behave not out of pre-existing norms, but from norms that emerge and are accepted within the crowd during the event.

Contagion Theory

A theory in social psychology that suggests ideas, attitudes, and emotions spread through a population like a contagious disease, influencing group behavior.

Convergence Theory

A theory suggesting that as societies develop, they begin to resemble each other more by adopting similar technologies and social structures.