There Are Three Main Ways to Analyze Financial Statements

question 58

Multiple Choice

There are three main ways to analyze financial statements.Which of the following does not represent one of these ways of analyzing financial statements?

• A)horizontal analysis
• B)ratio analysis
• C)financial statement analysis
• D)vertical analysis

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Definitions:

Validity

A measure of whether a test measures what it is supposed to measure.

Task-Oriented

Focused or centered on the completion of specific tasks or objectives rather than on broader goals or social interactions.

Explicit

Clearly expressed or fully stated in the actual text or speech.

Quantitative

Relates to research that focuses on obtaining and analyzing numerical data and statistical information.