The Type of Financial Analysis That Expresses Balance Sheet Accounts

question 17

Multiple Choice

The type of financial analysis that expresses balance sheet accounts as percentages of total assets is known as:

• A)horizontal analysis.
• B)vertical analysis.
• C)net worth analysis.
• D)expenditure analysis.

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Definitions:

Hypotheses Testing

A method of statistical inference used to decide whether there is enough evidence in a sample of data to support a particular belief or hypothesis about a population parameter.

r Values

Statistical measures representing correlation coefficients that indicate the strength and direction of a linear relationship between two variables.

Spearman Rank-Correlation

A nonparametric measure of rank correlation that assesses how well the relationship between two variables can be described by a monotonic function.

Rejection Region

The rejection region is a concept in hypothesis testing that represents the set of values for which the null hypothesis is considered not likely to be true and is therefore rejected.