Which of the Following Represents the Most Appropriate Description of Horizontal

question 32

Multiple Choice

Which of the following represents the most appropriate description of horizontal analysis?

• A) An analyst prepares pro forma financial statements for the next five years.
• B) An analyst compares financial ratios of a company over the last five years.
• C) An analyst compares financial ratios for the current year for two companies.
• D) An analysis prepares ratios to determine what sales are required to earn a profit.
• E) An analyst develops ratios to determine how much the company needs to borrow.

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Definitions:

Tinnitus

An abnormal ringing in the ear.

Angina

A condition marked by severe pain in the chest, often also spreading to the shoulders, arms, and neck, caused by inadequate blood supply to the heart.

Contusions

A type of bruise resulting from blunt force trauma that damages blood vessels under the skin without breaking the skin.

Lacerations

Deep cuts or tears in the skin or flesh, often requiring medical attention to repair.