Which of the Following Statements About Horizontal Analysis Is Correct

question 31

Multiple Choice

Which of the following statements about horizontal analysis is correct?

• A) it requires a minimum of 3 years of data to provide meaningful analysis.
• B) it compares numbers reported on a financial statement to others on the same statement.
• C) it compares numbers reported on the financial statements in the current period with those from the previous period.
• D) it determines the profitability of an entity.

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Definitions:

Communities of Color

Ethnic minority communities, which are composed of people who do not identify as white and share common cultural, racial, or ethnic heritage, often addressing shared experiences of marginalization or discrimination.

Cultural Factors

Elements that are influenced by the collective beliefs, values, customs, and behaviors of a group or society.

Custodial Care

Long-term care provided primarily for assistance with daily living rather than medical needs; often relates to elderly or disabled individuals.

Political Attitudes

Individual or collective viewpoints and preferences about political issues, policies, and personalities that shape voting behavior and political participation.