Determining the Percentage Changes in Line Items on Financial Statements

question 61

True/False

Determining the percentage changes in line items on financial statements for two consecutive years is called horizontal analysis.

---

Definitions:

Bimodal

Bimodal describes a distribution having two different modes, which are the most frequently occurring data points in a dataset.

Distribution

The way in which values are spread or distributed across a range in a dataset.

Measure of Variability

A measure of variability is a summary statistic that represents the amount of dispersion in a dataset, examples include range, variance, and standard deviation.

Measure of Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.