Horizontal Analysis Is Also Known as

question 64

Multiple Choice

Horizontal analysis is also known as

• A) linear analysis.
• B) vertical analysis.
• C) trend analysis.
• D) common size analysis.

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Definitions:

Net Profit Margin

A financial metric that measures how much of every dollar of revenues is translated into profits, after all expenses are deducted.

Earnings Per Share

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, highlighting operating performance.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.