An Expression of the Amount of Each Item in a Statement

question 101

Multiple Choice

An expression of the amount of each item in a statement shown as a percentage of some designated total for purposes of comparison is called:

• A) horizontal analysis.
• B) earnings per share analysis.
• C) return on total assets.
• D) vertical analysis.

---

Definitions:

Year-End Assets

The total value of all assets held by an individual or entity at the end of a fiscal year.

Bonds

Debt securities issued by entities (such as governments or corporations) to raise capital, with a promise to pay back the principal amount along with interest on specified dates.

Total Assets

The sum of all current and non-current assets owned by a company, representing the total resources that can be used to generate future revenue.

Mutual Funds

A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by an investment company with contributions from individual investors.