Which one of the following is not a tool in financial statement analysis? a. Horizontal analysis b. Circular analysis c. Vertical analysis d. Ratio analysis | Homework.Study.com (2024)

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• Three of the most common tools of financial analysis are ________. a. Financial reporting, ratio analysis, vertical analysis b. Ratio analysis, horizontal analysis, financial reporting c. Horizontal analysis, vertical analysis, ratio analysis d. Trend an
• Which of the following evaluates data over a period of time? a. Ratio analysis b. Financial analysis c. Vertical analysis d. Horizontal analysis
• Horizontal and vertical analyses are analytical tools frequently used to analyze financial statements. What type of information or insights can be obtained by using these two techniques? Explain how the output of horizontal analysis and vertical analysis
• What financial analysis technique would imply benchmarking with other firms? a. Horizontal analysis b. Vertical analysis c. Cross-sectional analysis d. Ratio analysis
• Expressing each financial statement item as a percentage of another amount on that statement is known as: A. Vertical analysis B. Horizontal analysis C. Ratio analysis D. Risk analysis
• Vertical analysis is also referred to as: a. time series analysis. b. common size analysis. c. trend analysis. d. financial analysis.
• What type of analysis is indicated by the following? a. Horizontal analysis b. Vertical analysis c. Liquidity analysis d. Common-size analysis
• A term for expressing a financial statement as a percentage is: a. vertical analysis b. ratio analysis c. horizontal analysis d. trend analysis e. common size analysis
• Another term for vertical analysis is: a. common-size analysis. b. liquidity analysis. c. horizontal analysis. d. leverage analysis.
• Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. Explain the difference between these two methods.
• Another term for horizontal analysis is: a. industrial analysis. b. financial analysis. c. trend analysis. d. common size analysis.
• Which of the following applies to vertical analysis? a. also called financial analysis. b. financial statement data for the same year is compared to different accounts. c. also referred to as trend analysis. d. financial statement data for the same accoun
• A technique for evaluating a series of financial statement data over a period of time is called: a. horizontal analysis b. vertical analysis c. ratio analysis d. None of these answer choices are correct.
• A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount is called: a. horizontal analysis b. vertical analysis c. ratio analysis d. None of these answer choices are correct.
• Expressing each financial statement item as a percentage of another amount on that statement is known as blank. a.Vertical analysis b.Horizontal analysis c.Ratio analysis d.Risk analysis
• The comparison of a company's financial condition and performance to a base amount is known as: a. financial reporting. b. horizontal ratios. c. investment analysis. d. risk analysis. e. vertical analysis.
• What are the differences between horizontal analysis and vertical analysis? What are some common ratios used to analyze financial information? How are they used in the decision-making process?
• The following schedule is a display of what type of analysis?(a) Vertical analysis.(b) Ratio analysis.(c) Horizontal analysis.(d) Trend analysis.
• The measurement of key relations among financial statement items is known as: A. horizontal analysis B. investment analysis C. ratio analysis D. risk analysis
• Distinguish between a horizontal and vertical analysis of financial statement data. What is the basic purpose for examining trends in a company's financial ratios and other data? What other kinds of comparisons might an analyst make?
• The percentage analysis of increases and decreases in individual items in comparative financial statements is called: a) vertical analysis b) horizontal analysis c) profitability analysis d) solvency analysis
• Given the following information, perform a vertical analysis.
• Horizontal analysis is also called a) Linear analysis. b) Vertical analysis. c) Trend analysis. d) Common-size analysis.
• In vertical analysis, a. the same base is used across all financial statements analyzed. b. a base amount is optional. c. a base amount is required. d. the results of the horizontal analysis are necessary inputs for performing the analysis.
• Which of the following pairs of terms in the area of financial statement analysis are synonymous? a. Ratio ; Trend b. Horizontal ; Trend c. Vertical ; Ratio d. Horizontal ; Ratio
• Horizontal analysis is also called common size analysis: a) consists of analyzing changes in financial statements across time b) consists of analyzing financial statements in terms of a base amount c) restates the income statement line items as a percent
• One variation of the horizontal analysis is known as: a. nonlinear analysis b. vertical analysis c. trend analysis d. common-size analysis
• Perform a vertical analysis on the following Information. | |2018| |2017| | |Amount|%|Amount|% |Cash |237,600| |659,600| |Accounts receivable |413,600| |149,600| |Inventory |677,600| |574,600| |Long-
• Horizontal analysis is a technique for evaluating financial statement data: a. for one period of time. b. over a period of time. c. on a certain date. d. as it may appear in the future.
• The horizontal analysis evaluates financial statement data: a. within a period of time. b. over a period of time. c. on a certain date. d. as it may appear in the future.
• Perform a horizontal analysis given the following information.
• A technique uses in comparative analysis of financial statement is: A. graphical analysis. B. preference analysis. C. common size analysis. D. returning analysis.
• Distinguish between ratio analysis and percentage analysis relative to the interpretation of financial statements. What is the value of these two types of analyses?
• Which type of analysis would highlight the percentage increase in inventory from one year to the next? a) Horizontal analysis b) Vertical analysis c) Common size analysis d) Comprehensive analysis
• Each line item is expressed as a percentage of some base year level when doing an analysis. A. Discounted cash flows B. Ratio analysis C. Horizontal analysis D. Vertical analysis
• Vertical analysis is a technique that expresses each item within a financial statement _______. (a) starting with the highest value down to the lowest value (b) in dollars and cents (c) in terms of a percent of a base amount (d) in terms of a percentage o
• Trend percentages are basically a type of: A. Horizontal analysis. B. Vertical analysis. C. Ratio analysis. D. All of the above answers are incorrect.
• What is the purpose of financial statement analysis? What are some tools we might use to analyze financial performance? What might we use to benchmark our performance? Why?
• Horizontal analysis involves: a. Comparing individual financial statement line items over time. b. Comparing individual financial statement line items to some benchmark, typically similar competitor's financial statement line items. c. Comparing indivi
• Common-size analysis is also known as - trend analysis. - ratio analysis. - vertical analysis. - matrix analysis.
• Given the following information, perform a vertical analysis. 12/31/2016
• 1) Perform a vertical analysis on the following information. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) 20122011 Cash$236,000$609,000 Accounts receivable$531,000
• Which of the following tools is used to analyze the industry attractiveness in the credit application process? a. Management analysis. b. PESTEL analysis. c. SWOT analysis.
• Which of the following tools is used to analyze the industry attractiveness in the credit application process? 1. Management analysis 2. PESTEL analysis 3. SWOT analysis
• What type of analysis is indicated by the following? Increase (Decrease*) 2010 2009 Amount Percent Current assets $380,000 $500,000 $120,000* 24%* Fixed assets 1,680,000 1,500,000 180,000 12% a. vertical analysis b. horizontal analysis c. liquidity anal
• For segment analysis, is it better to use horizontal or vertical comparisons?
• Vertical analysis is also known as A) perpendicular analysis. B) common size analysis. C) trend analysis. D) straight-line analysis.
• Perform a vertical analysis on the following information | |2013| 2012 |Cash|550,000|230,000 |Accounts receivable|910,000|780,000 |Inventory|710,000|500,000 |Long-term assets|2,200,000|2,600,000 |Tot
• Perform a vertical analysis on the following information. | |2015| |2014| | |Amount|%|Amount|% |Cash| 227,900| |636,900| |Accounts receivable|399,900| |141,900| |Inventory|657,900| |554,400| |Long-ter
• Hello Sir, It's me again, I need help. I have 4 Question. Question 1: What is the meaning of quality of earnings? Question 2: How do we complete a horizontal and vertical analysis? Question 3: What does the term vertical analysis mean? What is another na
• Horizontal analysis is also called ______.
• When a financial analyst determines the percentage change in operating income for the five-year period from 2011 to 2015, she is performing a: a) Time series analysis. b) Vertical analysis. c) Profitability analysis. d) Cross-sectional analysis.
• Horizontal analysis is analysis a. of dollar changes and percentage changes over two or more years. b. in which all items are presented as a percentage of one selected item on a financial statement. c. in which a statistic is calculated for the relatio
• Using the following income statements, perform the calculations needed for vertical analyses. (Decreases should be indicated by a sign. Round percentage values to 1 decimal place.)
• The best way to study the relationship of the components within a financial statement is to prepare: A. common size statements B. a trend analysis C. profitability analysis D. ratio analysis
• Which type of analysis would reveal a sales increase of $5000 from Year 1 to Year 2? A. Capital B. Horizontal C. Profitability D. Vertical
• Match each item with its definition. a. Discontinued Operations b. Extraordinary Items c. Change from one generally accepted accounting principle to another d. Horizontal analysis e. Vertical analysis
• Vertical analysis: A. identifies trends over time. B. involves comparing amounts across different financial statements. C. identifies the relative contribution made by each financial statement line item. D. provides an understanding of the relationshi
• Vertical analysis is a technique that expresses each item within a financial statement. A) in dollars and cents. B) in terms of a percentage of the item in the previous year. C) in terms of a percent of a base amount. D) starting with the highest value do
• An analytical tool that measures a company s performance against a predetermined standard is a: a) benchmark comparison analysis. b) profitability analysis. c) time-series analysis d) common size statement.
• Determine the term being defined by the following statement: The application of analytical tools to general-purpose financial statements and related data for making business decisions. Choose from the following choices: | Market prospects | Financial st
• Which is known as the 'common size analysis: horizontal analysis or vertical analysis? What is the significance of this name?
• Two common approaches to using ratio analysis are a. internal and external. b. horizontal and vertical. c. formal and informal. d. industry and general. e. None of the above
• Which of the following is not part of the conceptual framework project? a. Objectives of financial reporting. b. Quantitative characteristics. c. Qualitative characteristics. d. Basic elements of financial statements.
• Horizontal analysis evaluates a series of financial statement data over a period of time A) that has been arranged from the highest number to the lowest number. B) that has been arranged from the lowe
• Research and explain the horizontal analysis and how investors use this method in order to make investment decisions? Also, do you think that a horizontal analysis is better for companies that are growing or expanding?
• Horizontal analysis: A. Examines the amounts in a single statement expressed as a percent of a significant total. B. Is the same as common-size statements. C. Is the same as ratio analysis. D. Can be performed by examining changes in dollar amounts, perce
• What general problems must be addressed in doing ratio analysis for government financial condition analysis? Do traditional solvency ratios adequately address financial condition analysis concerns?
• Select the incorrect statement regarding horizontal analysis: a) Percentage analysis involves establishing the relationship of one amount to another. b) In doing horizontal analysis, an account is expressed as a percentage of the previous balance of the s
• Identify the three categories of ratios used to analyze financial information and discuss their usefulness.
• Financial Statements that express only percentages are known as __________. a. Profitability Statements. b. Horizontal Analysis. c. Uncommon Size Statements. d. Common Size Statements.
• Ratios are an input into which step in the financial analysis framework? a. Process data. b. Collect input data. c. Analyze/interpret the processed data.
• Determine the term being defined by the following statement: Examination of financial data across time. Choose from the following choices: | Market prospects | Financial statement analysis | Debt-to-equity ratio | Comparative financial statement | Prof
• A financial statement on which a vertical analysis is conducted is often called: a) a standardized statement. b) a common-size statement. c) a same-size statement.
• For purposes of financial analysis it is important to assess the differential impact of accounting principles on: a. return on equity b. professionalism c. individualism d. power distance
• Classify the following financial statement item based upon the major balance sheet classifications: Equipment.
• Relationships determined from a firm's financial information and used for comparison purposes are known as: a. financial ratios. b. comparison statements. c. dimensions analysis. d. scenario analysis. e. solvency analysis.
• Horizontal analysis of comparative financial statements includes the: a. development of common size statements. b. calculation of dollar amount changes and percentage changes from the previous to the current year. c. calculation of liquidity ratios. d. ev
• Consider the operating data for Poll Corporation presented below. What is the primary use of vertical analysis?
• A financial statement user performs horizontal analysis: a. to learn the percent change in a financial statement item from year to year. b. to calculate a financial statement item as a percentage of a different financial statement item. c. to learn the pe
• When developing forecasts, analysts should most likely:? A. develop possibilities relying exclusively on the results of financial analysis. B. use the results of financial analysis, analysis of other information, and judgment. C. aims to develop extreme
• Determine the term being defined by the following statement: The comparison of a company's financial condition and performance to a base amount. Choose from the following choices: | Market prospects | Financial statement analysis | Debt-to-equity ratio
• Which of the following would an analyst most likely be able to determine from a common-size analysis of a company's balance sheet over several periods? A. An increase or decrease in sales B. An increase or decrease in financial leverage C. A more effic
• Incremental analysis is most useful: A. in developing relevant information for management decisions B. as a replacement technique for variance analysis C. in choosing between capital budgeting methods D. in evaluating the master budget
• Consider the following data: Using a horizontal analysis, which of the following is correct? a) The consultation services showed an increase in revenue of 25%. b) The design services showed a decrease in revenue of 25%. c) The design services showed an in
• a. Go to the securities and exchange website. Analyze the section showing typical stock information and financial positions of companies. b. Next analyze one company's financial position and determine
• What are the critical performance dimensions for a) a retailer and b) a financial services company that should be considered in credit analysis? What ratios would you suggest looking at for each of
• What are four possible standards of comparison used to analyze financial statement ratios? Which of these is generally considered to be the most useful? Which one is least likely to provide a good basis for comparison?
• Which one of the following helps the analyst remove the effects of an information filter? a) Financial statements b) SEC Form 1OK c) Footnote disclosures d) Trend analysis
• All of the following are the building blocks for financial statement analysis except: A) Targeting growth opportunities that diversify exchange rates, risk exposure, and political uncertainty. B) Describing strategies that a firm pursues to differentiat
• The most effective method for evaluating period-to-period changes is to: a. focus on the changes in the numbers themselves. b. study the statement of cash flows. c. use the horizontal analysis method. d. All of the above are very effective in evaluating p
• Which of the following would a financial analysis not show? a) An award-winning engineer accepted the top development position. b) A company reduced costs in production, which increased its bottom line. c) An owner determined that he owns more equity i
• An EPS/EBIT analysis is one of the most widely used techniques for determining the extent that debt or stock should be used to finance strategies to be implemented. This exercise can give you practice
• Compares actual results with budget. a. Performance report b. Variance c. Sensitivity analysis d. Dynamic analysis
• ___ compares actual results with the budget. a. Performance report b. Variance c. Sensitivity analysis d. Dynamic analysis
• Regarding management problem structure and information requirements, which of the following represents the vertical information flows from lowest to highest? a. Strategic management analysis, tactical management, operations management, operations and busi
• All of the following are influences on the development of a country's financial reporting practices except: A. the country?s legal system. B. the country?s political system. C. the taxation system. D. the country?s cultural system. E. the country?s level
• In a balanced scorecard, which of the following is a key performance indicator of the financial the perspective? A. hours of employee training B. number of warranty claims C. percentage of market share D. return on investment
• Classify the following financial statement item based upon the major balance sheet classifications: Common stock.
• The trend analysis report of Doppler Inc. is given below: | (in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | Net income | $660 | $606 | $456 | $406 | $399 | Trend percentages | 165 | 152 | 114 | 102 | 100 Which of the following is a correc