Horizontal Analysis Evaluates a Series of Financial Statement Data Over

question 82

Multiple Choice

Horizontal analysis evaluates a series of financial statement data over a period of time

• A) that has been arranged from the highest number to the lowest number.
• B) that has been arranged from the lowest number to the highest number.
• C) to determine which items are in error.
• D) to determine the amount and/or percentage increase or decrease that has taken place.

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Definitions:

Positively Correlated

A relationship between two variables where both either increase or decrease together.

Portfolio

A conglomerate of monetary investments incorporating shares, debentures, material goods, cash on hand, and assets akin to cash, inclusive of mutual funds and ETFs.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.