Horizontal Analysis Is a Technique for Evaluating a Series of Financial

question 87

Multiple Choice

Horizontal analysis is a technique for evaluating 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:

Rent Receivable

An asset account representing the amount of rent that has been earned but not yet collected by the landlord.

Financial Statements

Formal records that detail a company’s financial activities and condition, typically including the balance sheet, income statement, and cash flow statement.

Goods Delivery

The process of transporting goods from a seller to the purchasing customer or client.

Services Provided

The performance of work, assistance, or activities for the benefit of another individual or organization.