What Type of Analysis Is Indicated by the Following

question 59

Multiple Choice

What type of analysis is indicated by the following?
Increase (Decrease*)
2011
2010
Amount
Percent
Current assets
$ 380,000
$ 500,000
$(120,000*)
(24%) *
Fixed assets
1,680,000
1,500,000
180,000
12%

• A)Vertical analysis
• B)Horizontal analysis
• C)Liquidity analysis
• D)Common-size analysis

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Definitions:

Actual Expenses

Real, documented expenses incurred for a specific purpose, often used for tax deduction calculations.

Local Benefits

Refers to services or advantages provided by local government or community organizations to their residents.

Real Property Taxes

Taxes imposed by local governments on real estate properties based on their assessed value.

Deductible

A cost that can be deducted from total income to lower the taxable income amount.