In Horizontal Analysis, Each Item Is Expressed as a Percentage

question 127

Multiple Choice

In horizontal analysis, each item is expressed as a percentage of the

• A) retained earnings figure.
• B) total assets figure.
• C) net income figure.
• D) base year figure.

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Definitions:

Excess Supply

A situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price.

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price over a specified period.

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a given price, at a specific time.

Market Equilibrium

A condition in which a market's supply and demand balance each other, and, as a result, prices become stable.