Comparing the Amount of a Balance Sheet Item in One

question 41

Multiple Choice

Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called:

• A)common-size analysis.
• B)horizontal analysis.
• C)vertical analysis.
• D)trend analysis.

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Definitions:

Nonprogrammed Decision

Decisions made in response to situations that are unique, poorly defined, and largely unstructured, requiring a custom-tailored solution.

Routine Situation

A scenario or circumstance that occurs regularly and is characterized by predictable patterns and a lack of novelty.

Job Description

A detailed summary of the duties, responsibilities, required qualifications, and reporting lines of a specific position within an organization.

Morphological Analysis

A method used to solve problems by breaking them down into their most basic components for analysis.