Horizontal and Vertical Analyses Are Analytical Tools Frequently Used to Analyze

question 219

Essay

Horizontal and vertical analyses are analytical tools frequently used to analyze financial statements. What type of information or insights can be obtained by using these two techniques? Explain how the output of horizontal analysis and vertical analysis can be compared to industry averages and/or competitive companies.

---

Definitions:

Critical Discussion

A method of engaging in constructive dialogue and examination of ideas, theories, or beliefs in a detailed and analytical manner.

Pantheism

A belief system that equates God with the universe and everything in it, considering the universe and nature as an embodiment of divinity.

Believe in God

The faith or conviction in the existence of a deity or deities, typically involving aspects of worship, reverence, and moral guidance.

Problem of Evil

The Problem of Evil is a philosophical dilemma questioning how to reconcile the existence of evil and suffering with the belief in a benevolent and omnipotent God.