What Is the Difficulty in Using Horizontal, Vertical, or Ratio

question 3

Multiple Choice

What is the difficulty in using horizontal, vertical, or ratio analysis?

• A) The complicated calculations required to arrive at change statements
• B) Identifying the changes and speed of changes in the ratios, when the change is unexpected or unexplained
• C) Knowing when a change in account balance or relationship is significant enough to signal possible fraud
• D) Assessing the magnitude or significance of changes in account balances looking only at raw financial statement numbers

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Definitions:

Buying Center

A group of individuals within an organization who participate in the decision-making process for purchasing goods or services.

Buyer

An individual or organization that purchases goods or services for personal use or for incorporation into products or services they provide.

Buying Center

A collection of individuals within an organization who participate in the decision-making process related to purchasing products or services.

Influencers

Individuals who have the power to affect the purchasing decisions of others, often through their authority, knowledge, or relationship with their audience.