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.

---

Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a reflexive response without prior conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Classical Conditioning

An instructional process where pairing two stimuli repeatedly results in a response first prompted by the second stimulus, but eventually prompted by only the first stimulus.

Extinction

A process in which the conditioned response is weakened when the conditioned stimulus is repeated without the unconditioned stimulus.