Examlex
Instructions: Please define the following key terms.Show Who? What? Where? When? Why Important?
-Hegira
Trend Analysis
A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.
Gross Profit
The financial metric representing the difference between revenue and the cost of goods sold, before accounting for other expenses.
Vertical Analysis
A financial statement analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.
Cost Of Goods Sold
Refers to the total expense directly related to the production of goods or services a company sells.
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