All of the Following Statements About Vertical Analysis Are True

question 32

Multiple Choice

All of the following statements about vertical analysis are true except

• A)Vertical analysis makes it easier to for intercompany comparisons.
• B)Vertical analysis is seldom performed on the income statement.
• C)Vertical analysis makes it easier to compare companies of different sizes.
• D)Vertical analysis is seldom performed on the cash flow statement.

Understand and apply the intuitive method to construct an initial feasible solution.

Explain the function and implementation of the stepping-stone method.

Distinguish between feasible and optimal solutions in transportation problems.

Understand the implications of supply-demand imbalance and the necessity of dummy destinations or sources.

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Definitions:

Payment Order

An instruction by a customer to its bank to pay a specific amount of money to a designated recipient, key in facilitating international trade and finance.

Originator

The individual or entity that creates or initiates something, often used in financial contexts to refer to the original lender or issuer of a loan or financial instrument.

EFTA

Stands for the European Free Trade Association, which is a regional trade organization and free trade area consisting of European countries.

Stop Payment Order

An instruction to cancel the payment process of a check, draft, or another financial instrument before it has been cashed or deposited.