Horizontal Analysis

question 225

Multiple Choice

Horizontal analysis:

• A) Evaluates financial data across industries.
• B) Is the presentation of financial ratios.
• C) Is a tool used to evaluate financial statement items relative to industry statistics.
• D) Is a method used to evaluate changes in financial data across time.
• E) Is also called vertical analysis.

---

Definitions:

Degrees Of Freedom

The number of values in a study that are free to vary when statistics, like variance, are being calculated, influencing the shape of various distributions.

Parameters Estimated

The process of using sample data to estimate the values of parameters in a statistical model.

Normal Population

A population that follows a normal distribution, where the mean, median, and mode are equal, and the data symmetrically distributes around the mean.

Degrees Of Freedom

The quantity of unique variables or figures permissible in a statistical distribution adhering to set restrictions.