Horizontal Analysis and Vertical Analysis,including the Preparation of Common-Size Financial

question 123

Essay

Horizontal analysis and vertical analysis,including the preparation of common-size financial statements,are important analytical techniques used to evaluate the strength of published financial statements.
a_Define:
1) Horizontal analysis
2) Vertical analysis
3) Common-size financial statements b_How is each of these techniques helpful in the analysis of financial statements?

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Definitions:

Psychiatry

A medical specialty dedicated to the diagnosis, prevention, study, and treatment of mental disorders, involving a wide array of treatments including medication and psychotherapy.

Statistical Concept

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Abnormal Behaviour

Refers to patterns of emotion, thought, and action deemed pathological (outside the norm of a culture) for one or more reasons, including statistical rarity, personal distress, or violation of norms.

Galen

An ancient Greek physician and philosopher whose theories and writings on anatomy and medicine significantly influenced Western medical practice for centuries.