All of the Following Statements Regarding a Horizontal Analysis Are

question 90

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 2013 is $125,000 and Fees Earned in 2014 is $143,750, a horizontal analysis will indicate a 15% increase over this period.
• D) When two statement are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

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Definitions:

Glass Ceiling

An invisible barrier that prevents certain individuals, often women and minorities, from advancing to higher positions or levels, despite their qualifications.

Economic Independence

The state of having sufficient personal wealth to live, without needing to depend on income from some form of employment.

Access Capital

The ability of a business or individual to obtain funds or resources needed for investment purposes.

Innovative Ideas

Novel and creative thoughts or concepts that have the potential to bring about change or solve problems.