The Primary Focus of Horizontal Analysis Is

question 12

Multiple Choice

The primary focus of horizontal analysis is:

• A)percentage changes in line items from comparative financial statements.
• B)the balance sheet only.
• C)the amount of individual financial statement line items as a percentage of some related total,such as total assets.
• D)the income statement only.

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Definitions:

Foreign Portfolio Investment

Investment in financial assets from another country, such as stocks or bonds, that does not grant the investor control over the business entities in which the investment is made.

U.S. Government Bonds

Securities issued by the United States Department of the Treasury to finance government spending.

Net Capital Outflow

The difference between a nation's savings and its domestic investments, representing international transfers of capital.

U.S. Assets

Assets located within the United States that may include real estate, stocks, bonds, and other financial instruments owned by individuals, companies, or the government.