Many Countries Around the World Require a

question 69

Multiple Choice

Many countries around the world require a

• A)statement of cash flows.
• B)cash reconciliation statement.
• C)statement of funds flow.
• D)statement of cash created.
• E)statement of cash receipts and disbursements.

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Definitions:

Vertical Analysis

A financial analysis method that represents each item in a financial statement as a percentage of a base figure, enabling comparison and assessment of financial health over different periods.

Trend Analysis

A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Gross Profit

The financial metric representing the difference between revenue and the cost of goods sold, before accounting for other expenses.

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.