When a Financial Analyst Determines the Percentage Change in Operating

question 82

Multiple Choice

When a financial analyst determines the percentage change in operating income for the five-year period from 2011 to 2015, she is performing a

• A)time series analysis.
• B)vertical analysis.
• C)profitability analysis.
• D)cross-sectional analysis.

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Definitions:

Cheque Delay

A situation where there is a postponement in the processing or clearance of a cheque by a bank.

Average Daily Float

This refers to the average amount of uncollected checks or electronic transfers in the process of clearing.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Collection Delay

The time lag between the date an entity issues an invoice and the date it actually receives payment.