Indicate whether each of the following statements is true or false.________ a) Some forms of financial statement analysis involve identifying changes in the same item for the same company over a period of time.________ b) Some forms of financial statement analysis involve comparing operations of different companies in the same industry.________ c) Vertical analysis is also called trend analysis.________ d) Vertical analysis refers to studying the behavior of individual financial statement items over several periods.________ e) Horizontal analysis could be done using changes in the absolute dollar amount of an item or trends in percentages.
What will be an ideal response?
a) T b) T c) F d) F e) T
a) Some forms of financial statement analysis involve identifying changes in the same item for the same company over a period of time.
b) Some forms of financial statement analysis involve comparing operations of different companies in the same industry.
c) Horizontal analysis is also called trend analysis.
d) Horizontal analysis refers to studying the behavior of individual financial statement items over several periods.
e) Horizontal analysis could be done using changes in the absolute dollar amount of an item or trends in percentages.
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