All of the Following Statements Regarding a Horizontal Analysis Are

question 165

Multiple Choice

All of the following statements regarding a horizontal analysis are true except:

• A) A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
• B) A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
• C) If Fees Earned in Year 1 is $125,000 and Fees Earned in Year 2 is $143,750, a horizontal analysis will indicate a 15% increase over this period.
• D) When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

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Definitions:

Philip Zimbardo

A psychologist known for conducting the Stanford prison experiment, which explored the effects of perceived power and authority on behavior.

Negative Attitudes

Dislike or adverse feelings towards a particular idea, object, or person.

Social Expectations

The anticipated standards of behavior set by society for individuals to follow, which can influence personal interactions and social behavior.

Social Facilitation

The enhancement of performance in the presence of others, commonly observed in various social contexts.