Common Methods of Financial Statement Analysis Include All of the Following

question 54

Multiple Choice

Common methods of financial statement analysis include all of the following except:

• A)Vertical analysis.
• B)Horizontal analysis.
• C)Incremental analysis.
• D)Ratio analysis.

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Definitions:

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

Accounts Receivable Approach

A method for managing and analyzing a company's incoming payments or receivables from customers to whom it extends credit.

Monthly Interest Rate

The interest rate for a loan or financial product recalculated on a monthly basis.

Variable Cost

Expenses that change in proportion to the activity of a business such as raw materials and labor costs.