An Expression of the Amount of Each Item in a Statement

question 101

Multiple Choice

An expression of the amount of each item in a statement shown as a percentage of some designated total for purposes of comparison is called:

• A) horizontal analysis.
• B) earnings per share analysis.
• C) return on total assets.
• D) vertical analysis.

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Definitions:

Security

Measures taken to protect a system, entity, or information from theft, damage, or unauthorized access.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender over a specified period.

Short-Term Funds

Investments that are made for a short duration, typically less than one year, to meet immediate financial requirements.

Trade Credit

The extension of credit by a supplier to their customer, allowing the customer to purchase goods or services and pay the supplier at a later date.