Managers Look at the Financial Statement to See How Well

question 57

Essay

Managers look at the financial statement to see how well a company is doing,but the account balances alone do not tell managers enough.Horizontal and trend analyses are commonly used by managers to help assess the company's financial strengths and weaknesses.
Required:
Explain what horizontal analysis and trend analysis are and how the numbers are used.What are the steps in preparing horizontal and trend analysis?

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Definitions:

Self-Efficacy

An individual's belief in their own ability to complete tasks and reach goals, influencing health behavior changes.

People's Belief

The convictions or acceptances that something exists or is true, especially without proof, influencing their behavior and perspective.

Behaviors Necessary

Actions required or deemed essential for achieving specific outcomes, such as adhering to a treatment plan for health improvement.

Transtheoretical Model

A theory of behavior change that outlines six stages of change individuals go through when modifying behavior.