Horizontal Analysis Is a Technique for Evaluating a Series of Financial

question 33

Multiple Choice

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

• A) that has been arranged from the highest number to the lowest number.
• B) that has been arranged from the lowest number to the highest number.
• C) to determine which items are in error.
• D) to determine the amount and/or percentage increase or decrease that has taken place.

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Definitions:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision or choosing to carry out one action instead of another.

Accountants

Professionals who perform accounting functions such as audits or financial statement analysis according to prescribed methods.

Wages

Payments made to employees for their labor, typically calculated by hour, day, or piece.

Foregone Opportunities

The benefits or income missed out on when choosing one alternative over another.