Horizontal Analysis Is Analysis

question 185

Multiple Choice

Horizontal analysis is analysis

• A) of percentage changes over several years.
• B) in which all items are presented as a percentage of one selected item on a financial statement.
• C) in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
• D) of all ratios that increased or decreased over past accounting periods.

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Definitions:

Increase Profitability

Strategies or actions aimed at enhancing a company's financial gains by increasing revenue, reducing costs, or both.

Operate Efficiently

The ability of an organization to maximize outputs while minimizing inputs and waste.

Maintain Price

The strategy or practice of keeping the price of a product or service at a certain level, often to manage competition or market perception.

Identifying Potential Customers

The process of analyzing the market to determine who the target audience is for a product or service, often involving demographic and psychographic research.