Which of the Following Statements Regarding Horizontal Analysis Is Not

question 12

Multiple Choice

Which of the following statements regarding horizontal analysis is not true?

• A)Percentage analysis involves computing the percentage relationship between two amounts.
• B)A horizontal analysis of cost of goods sold on the income statement includes dividing gross margin by total revenue.
• C)Horizontal analysis attempts to eliminate the materiality problem of comparing firms of different sizes.
• D)In horizontal percentage analysis, a financial statement line item is expressed as a percentage of the previous balance of the same item.

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Definitions:

Bracero Program

A series of laws and diplomatic agreements, initiated in 1942, between the U.S. and Mexico, allowing millions of Mexican men to come to the United States to work on short-term, primarily agricultural labor contracts.

Mexican Immigrants

Individuals from Mexico who have moved to another country, often for reasons such as seeking better economic opportunities or escaping violence.

Citizenship

The status of being a recognized member of a country, with specific rights and duties as defined by that country's laws.

Reservations

Designated areas of land set aside by the government for the use of Indigenous tribes, often recognized as sovereign entities.