Indicate Whether Each of the Following Statements About Financial Statement

question 67

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) 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.
_____ b) The reason behind a financial statement ratio or percentage analysis result is usually self evident and does not require further study or analysis.
_____ c) 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.
_____ d) Vertical analysis compares two or more financial statement items within the same time period.
_____ e) One form of horizontal analysis is the preparation of common size financial statements.

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Definitions:

Reinforcing Factors

Elements that increase the likelihood of a person adopting or continuing a health-related behavior.

Precontemplation Stage

The stage of behavior change where the individual is not yet considering change or is unaware of the need to change.

Transtheoretical Model

A psychological model that outlines stages of change individuals go through in modifying behavior, from precontemplation to maintenance.

Contemplation Stage

A stage in the Transtheoretical Model of Change where an individual is considering making a change in their behavior, but has not yet committed to action.