Which of the Following Statements Regarding Horizontal Analysis Is False

question 24

Multiple Choice

Which of the following statements regarding horizontal analysis is false?

• A) Horizontal analysis can include more than two years of financial data.
• B) Horizontal analysis is facilitated by computing dollar and percentage changes in financial statement items.
• C) Horizontal analysis analyzes ratio differences occurring between companies.
• D) Horizontal analysis can include the statement of cash flows.

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Definitions:

77 Percent

This term could refer to a specific statistic or percentage in various contexts without a definition in isolation.

George C. Marshall

A prominent American statesman and soldier, who served as the Chief of Staff of the U.S. Army during World War II and later as Secretary of State and of Defense, playing a crucial role in the European recovery post-war through the Marshall Plan.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Free People

Individuals who are not subject to the control or slavery by another; in historical contexts, it often refers to those not enslaved or serfs.