If the Comparative Balance Sheet Shows the Amount and Percentage

question 115

Multiple Choice

If the comparative balance sheet shows the amount and percentage of decrease in merchandise inventory from 2019 to 2020, the firm used:

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

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Definitions:

Statistical Models

Representations of complex systems through mathematical formulas and algorithms based on statistical principles.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable (the independent variable).

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effect on dependent variables, helping to determine causal relationships.

Specific Risk

The risk associated with individual securities or businesses, distinct from overall market risk, that can be mitigated through diversification.