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Imagine that you attend a lecture given by a guest lecturer. He emphasizes that people can recognize complex shapes and other visual images-such as animals and machinery-in terms of arrangements of basic 3-D shapes. This lecturer probably would be a strong supporter of which of the following approaches?
Horizontal Analysis
An analytical approach to finance, examining historical financial records from several periods to spot growth trends and patterns.
Vertical Analysis
A technique for examining financial statements by presenting each item in the main categories of accounts (assets, liabilities, and equity) on a balance sheet as a fraction of the overall category.
Balance Sheet Data
Information related to the assets, liabilities, and stockholders' equity of a company as presented in its balance sheet at a specific date.
Current Ratio
An indicator of a business's capability to cover its obligations due in less than a year, determined by dividing the total of current assets by the total of current liabilities.
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