Indicate Whether Each of the Following Statements About Financial Statement

question 89

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
1. The reason behind a financial statement ratio or percentage analysis result is usually self evident and does not require further study or analysis.
2. In horizontal percentage analysis, an item from the financial statements is expressed as a percentage of the same item from a previous year's financial statements.
3. Horizontal analysis for several years can be done by choosing one year as a base year and calculating increases or decreases in relation to that year.
4. One form of horizontal analysis is the preparation of common size financial statements.
5. Vertical analysis compares two or more financial statement items within the same time period.

Understand the concept of residual (salvage) value in the context of asset depreciation.

Analyze the impact of asset purchase, residual value, and useful life estimates on depreciation expense.

Understand how accumulated depreciation affects the carrying amount of an asset.

Identify costs included in the determination of an asset’s depreciable base.

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Definitions:

SS1

Typically refers to a specific model or part number in equipment or a setting/configuration code in systems, but without context, its specific meaning varies widely.

Data Compare Instruction

A command in programming that compares two sets of data or values to determine if they are equal or if one is greater or less than the other.

LESS THAN

A comparative operator that evaluates whether the value on its left is smaller than the value on its right.

EQUAL

A condition or operation in computing and mathematics used to determine if two values or expressions are identical in value.