Horizontal Analysis Is Analysis in Which

question 107

Multiple Choice

Horizontal analysis is analysis in which

• A)financial statement lines are expressed as a percent of the base (earliest) year.
• B)all items are presented as a percentage of one selected item on the financial statement.
• C)a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
• D)ratio increases and decreases are presented for the past two accounting periods.

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Definitions:

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

Independent Agencies

Government organizations that operate independently of the executive departments, tasked with regulating and overseeing specific areas of public policy.

Social Regulation

Rules imposed by government to correct market failures and achieve social policy goals, such as environmental protection and worker safety.

Executive Agencies

Agencies of the executive branch of government that are task-focused and responsible for the execution of laws and government policies.