Horizontal Analysis

question 7

Multiple Choice

Horizontal analysis

• A)is financial statement data that is viewed horizontally from the right to left across time.
• B)requires the financial statement data under analysis to be divided by the base amount in that financial statement.
• C)is financial statement data that is viewed vertically from top to bottom within the same period of time.
• D)is always used for intercompany comparisons.

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Definitions:

Farm Products

Items derived from agriculture, including crops and livestock.

Technological Advances

Refers to improvements and innovations in technology that can enhance productivity, efficiency, and quality of life.

Food Production

The process of cultivating plants and raising livestock for the purpose of providing food for consumption.

Per Capita Incomes

The average income earned per person in a certain area in a specified year.