Which of the Following Types of Analysis Allows for the Comparison

question 71

Multiple Choice

Which of the following types of analysis allows for the comparison of financial statement items between companies of different size?

• A)Horizontal approach
• B)Vertical approach
• C)Diagonal approach

---

Definitions:

Preferred Stock

A type of stock that typically pays dividends at a fixed rate and has priority over common stock in terms of dividend payments and assets in the event of liquidation.

Ex-dividend Date

The date on which the buyer of a stock is not entitled to the next dividend payment. After this date, the stock sells without its dividend rights.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment.

Record Date

The record date is a set date when a company determines its shareholders who are eligible to receive dividends or participate in corporate actions.