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:

Symbol Manipulators

Symbol manipulators, in the context of cognitive science or artificial intelligence, refer to systems or devices that can alter, combine, or use symbols (representations of ideas or objects) to solve problems or perform tasks.

Parallel Processes

Parallel processes refer to the ability of the brain to process multiple information streams simultaneously, enhancing cognitive efficiency.

Serial

Pertaining to processes or operations that occur sequentially, one after the other, often used in context with information processing or serial tasks in cognitive psychology.

Sequential

Pertaining to events, ideas, or objects arranged or occurring in a logical order or sequence.