Which of the Following Statements Regarding Horizontal Analysis Is Incorrect

question 154

Multiple Choice

Which of the following statements regarding horizontal analysis is incorrect?

• A) Percentage analysis involves establishing the relationship of one amount to another.
• B) A horizontal analysis of cost of goods sold on the income statement includes dividing net income by total revenue.
• C) Percentage analysis attempts to eliminate the materiality problem of comparing firms of different sizes.
• D) In doing horizontal analysis, an account is expressed as a percentage of the previous balance of the same account.

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Definitions:

Treponema Pallidum

A spirochete bacterium that causes syphilis, a sexually transmitted infection.

Venereal Disease

Infections transmitted through sexual contact, also known as sexually transmitted infections (STIs).

Prepuce

The fold of skin that covers the head of the penis or clitoris.

Glans Penis

The expanded distal end of the penis, characterized by a high degree of sensitivity and the location of the urethral opening.