Horizontal Analysis Is Analysis

question 148

Multiple Choice

Horizontal analysis is analysis

• A)of dollar changes and percentage changes over two or more years.
• B)in which all items are presented as a percentage of one selected item on a financial statement.
• C)in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements
• D)of all ratios that increased or decreased over past accounting periods.

---

Definitions:

Non-cumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.

Par Value

The nominal or face value of a stock or security at issuance, which may not reflect its actual market value.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and entitlement to dividends.

No-par Value

Refers to stocks issued without a nominal or face value, where the market value is determined by investor demand.