All of the Following Statements Regarding a Horizontal Analysis Are

question 165

Multiple Choice

All of the following statements regarding a horizontal analysis are true except:

• A) A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
• B) A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
• C) If Fees Earned in Year 1 is $125,000 and Fees Earned in Year 2 is $143,750, a horizontal analysis will indicate a 15% increase over this period.
• D) When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

---

Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Psychiatric Consultation

A specialized service often sought by primary care providers or other medical professionals for diagnosing and treatment recommendations for patients with mental health issues.

Cultural Beliefs

The shared ideas, values, and expectations that are inherent within a specific culture, influencing individuals’ behaviors and perceptions.

Cognitive Flexibility

the mental ability to switch between thinking about two different concepts or to think about multiple concepts simultaneously.