In Vertical Analysis

question 56

Multiple Choice

In vertical analysis

• A) a base amount is required.
• B) a base amount is optional.
• C) the same base is used across all financial statements analyzed.
• D) the results of the horizontal analysis are necessary inputs for performing the analysis.

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Definitions:

Projective Tests

Psychological assessment tools that use ambiguous stimuli to elicit responses that are thought to reveal hidden emotions and internal conflicts.

Rorschach Inkblot Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.