Contrast the Circumstances Where Horizontal Analysis Would Be an Effective

question 77

Essay

Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful.

---

Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Disclosures

The act of making new or secret information known, typically in a formal report.

Financial Accounting Standards Board (FASB)

The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles.

Securities and Exchange Commission (SEC)

A U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock market to protect investors.