If an Analyst Wishes to See How a Company's Operating

question 96

Multiple Choice

If an analyst wishes to see how a company's operating expenses as a percentage of net sales have changed from one year to the next, which of the following types of financial statement analysis would be used?

• A) Vertical analysis
• B) Horizontal analysis
• C) Ratio analysis
• D) Common-size financial statement analysis

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Definitions:

Benefits Important To The Prospect

Features or aspects of a product or service that are particularly valued or needed by a potential client or customer.

Unique Product Features

Specific characteristics of a product that set it apart from competitors' offerings in the market.

Benefits

Advantages or positive outcomes that result from a product, service, or action.

Needs Assessment

A process to identify and evaluate needs within a group or organization to determine necessary actions or solutions.