The Primary Focus of Horizontal Analysis Is

question 75

Multiple Choice

The primary focus of horizontal analysis is:

• A) percentage changes in comparative financial statements.
• B) the balance sheet only.
• C) the changes in individual financial statement amounts as a percentage of some related total.
• D) the change in key financial statement ratios over a certain time frame.

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Definitions:

Inside Directors

Members of a company's board of directors who are also part of the company's management team, often holding executive positions.

Outside Directors

Members of a company's board of directors who are not part of the company's management and are typically brought in to provide independent oversight.

Preferred Stock

Stock that conveys preferences to its holders with respect to assets and dividends.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.