Horizontal Analysis

question 133

Multiple Choice

Horizontal analysis:

• A)is exactly the same as "vertical analysis".
• B)refers to the development of percentages indicating the proportionate change in the same item over time.
• C)is useful for balance sheet but not for income statement.
• D)involves the expression of each item on a particular period's financial statements as a percent of one specific item which is referred to as a base.
• E)None of these choices are correct.

---

Definitions:

Tight Cultures

Societies or organizations that have strict norms and a low tolerance for deviant behavior, leading to more uniformity in social conduct.

Uncertainty Avoidance

The degree to which a society tolerates risk and uncertainty.

Individualism

A theory in society that prioritizes individual freedom over the control of groups or the government.

Cultural Tightness

Describes the degree to which a culture holds tight norms and a low tolerance for deviant behavior, affecting how flexible or strict societal norms are.