Comparing Operating Expenses as a Percentage of Sales Is an Example

question 92

Multiple Choice

Comparing operating expenses as a percentage of sales is an example of:

• A)Vertical analysis.
• B)Horizontal analysis.
• C)Diagonal analysis.
• D)Both vertical and horizontal analysis.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Investment

The allocation of resources, usually financial, in expectation of a future return.

IFRS

stands for International Financial Reporting Standards, which are a set of accounting standards developed by the IASB that aim to bring consistency to accounting language, practices, and statements globally.

Consolidated Statement

Financial statements that reflect the combined operations, assets, and liabilities of a parent company and its subsidiaries.