Horizontal Analysis of Comparative Financial Statements Includes

question 13

Multiple Choice

Horizontal analysis of comparative financial statements includes

• A) development of common-sized statements
• B) calculation of liquidity ratios
• C) calculation of dollar amount changes and percentage changes from the previous to the current year
• D) evaluation of each component in a financial statement to a total within the statement

---

Definitions:

Fraction

A numerical quantity that is not a whole number, representing a part of a whole.

Evaluate

To calculate the value of an expression or assess the significance of something in a given context.

Fraction

A mathematical expression representing a part of a whole, typically written with a numerator and a denominator.

Exponentiation

A mathematical action that consists of elevating a number to the exponent of another number.