Which Type of Approach Should Be Used When Evaluating Corporate

question 104

Multiple Choice

Which type of approach should be used when evaluating corporate results using horizontal analysis?

• A)Study of absolute amounts
• B)Percentages
• C)Trends
• D)All of these answers are correct.

---

Definitions:

Principles-based

An approach that bases decisions on general principles or values rather than specific rules.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Accounting For Inventories

The process of tracking and managing the goods a company holds for the purpose of sale or production, including valuation and cost determination.