The Comparison of a Company's Financial Condition and Performance Across

question 127

Multiple Choice

The comparison of a company's financial condition and performance across time is known as:

• A) Horizontal analysis.
• B) Vertical analysis.
• C) Political analysis.
• D) Financial reporting.
• E) Investment analysis.

---

Definitions:

Subsidiary Ledger

An elaborate record book holding specific subsidiary accounts linked to a principal account, including accounts receivable and accounts payable.

General Ledger

The main accounting record of a company or organization, containing all the financial accounts and transactions.

Special Journal

A journal used in accounting to record transactions of a similar type.

General Journal

A primary accounting journal where all types of transactions are initially recorded before being posted to specific accounts in the ledger.