An Accurate Description of Horizontal Analysis Would Be Which of the Following

question 69

Multiple Choice

An accurate description of horizontal analysis would be which of the following?

• A)Study of percentage changes in various financial statement amounts from year to year
• B)Study of changes in individual financial statement amounts as a percentage of a related base amount
• C)Study of changes in key financial ratios from year to year
• D)None of the above

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Definitions:

Stock Price Index

A stock price index measures the value changes of a specified set of stocks, representing a segment of the stock market, to understand market trends and investment performance.

Economic Indicators

Statistical metrics used to gauge the overall health of the economy.

Monetary Tool

Instruments used by central banks to control the supply of money in the economy, impacting interest rates and overall economic activity.

Open-Market Operations

These are actions, like buying or selling government bonds, undertaken by central banks to control the money supply and interest rates.