True or False: Vertical analysis is the proportional analysis of a financial statement.1 pointFalseTrue

Vertical analysis refers to:Multiple ChoiceExpressing each item in a financial statement as a percentage of the same base amount.Expressing each item in a financial statement as its trend over time.Expressing each item in a financial statement in order of highest importance to lowest importance.Expressing each item in a financial statement in order of highest amount to lowest amount.

Horizontal analysis:Multiple ChoiceIs a method used to evaluate changes in financial data across time.Is also called vertical analysis.Is the presentation of financial ratios.Is a tool used to evaluate financial statement items relative to industry statistics.Evaluates financial data across industries.

Horizontal analysis involves the study of:Group of answer choicesthe percentage amount of various financial statement amounts compared to a total amount on the financial statementnone of the abovethe change in key financial statement ratios over a certain time frame or horizonpercentage changes in the balances shown in comparative financial statements

Vertical analysis is also known asSelect one:a.Static analysisb.Structural analysisc.Cross-sectional analysisd.All of the above

Horizontal analysis is:Select one:a.also called common size analysis.b.consists of analyzing changes in financial statements across time.c.consists of analyzing financial statements in terms of a base amount.d.restates the income statement line items as a percentage of sales