Examination of the Relationship Between Two Numbers or Sets of Numbers

question 74

Multiple Choice

Examination of the relationship between two numbers or sets of numbers on financial reports describes:

• A) Horizontal analysis
• B) Vertical analysis
• C) Ratio analysis
• D) Statement analysis

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Definitions:

Consolidation

Consolidation involves combining the financial statements of multiple subsidiaries or businesses into a single, aggregated set of financial statements for the parent company.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company with its subsidiaries.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over its useful life.