Which One of the Following Is Not a Tool in Financial

question 39

Multiple Choice

Which one of the following is not a tool in financial statement analysis?

• A) Horizontal analysis
• B) Circular analysis
• C) Vertical analysis
• D) Ratio analysis

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Definitions:

Cash Disbursements

The actual cash payments made by a business, including expenses, investments, and debt payments.

Budgeted

The process of creating a financial plan for the anticipated revenues and expenses for a future period.

Zero-Based Budgeting

A budgeting method where all expenses for each new period are justified, starting from a "zero base," regardless of whether each budget is higher or lower than the previous one.

Budgeted Expenditures

Estimated spending for a given period as planned in a budget, often categorized by departments or projects.