All of the Following Statements Regarding a Horizontal Analysis Are

question 220

Multiple Choice

All of the following statements regarding a horizontal analysis are true except

• A) A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
• B) A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
• C) If fees earned in 2010 are $150,000 and fees earned in 2011 are $187,500, a horizontal analysis will indicate a 25% increase over this period.
• D) When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

Apply concepts of statistical inference to evaluate skewness and its effects on means and variances in salary data.

Understand the concept of standard deviation and its application in comparing population means.

Comprehend the calculation and interpretation of the standard error of the sample mean difference.

Analyze positively skewed distributions and their implications on salaries.

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