Horizontal Analysis of Comparative Financial Statements Includes the

question 46

Multiple Choice

Horizontal analysis of comparative financial statements includes the

• A) development of common-size statements.
• B) calculation of dollar amount changes and percentage changes from the previous to the current year.
• C) calculation of the percentage of net sales for each item listed.
• D) calculation of liquidity ratios.

---

Definitions:

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, to induce another party into a contract.

Privacy Torts

Legal actions for violations involving unauthorized intrusions or interference with one's personal privacy.

Conversion

The unauthorized act of taking someone else's property and converting it to one's own use, in violation of the rightful owner's rights.

Trespass to Property

A legal term referring to the unauthorized entry onto another person's land or property without permission or legal right.