Horizontal Analysis Is Analysis

question 148

Multiple Choice

Horizontal analysis is analysis

• A)of dollar changes and percentage changes over two or more years.
• B)in which all items are presented as a percentage of one selected item on a financial statement.
• C)in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements
• D)of all ratios that increased or decreased over past accounting periods.

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Definitions:

Efficiency Wages

Wages set above the market equilibrium level by employers to increase productivity, discourage turnover, and attract better talent.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, affecting organizational efficiency and continuity.

Superstars

Individuals who achieve exceptional success and influence in their fields, often resulting in significant earnings or recognition.

High Incomes

Earnings that significantly exceed the average or median levels, often associated with increased purchasing power and economic status.