We use horizontal analysis to _____.Multiple Choicecompare two companies of different sizesmake company comparisons to industry averagesdistinguish persistent earnings from one-time itemsanalyze trends in financial statement data for a company over time

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

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 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

_____ analysis examines a particular firm’s performance over time. Group of answer choicesOverallTime-seriesCombinedCross-sectional

The measurement of key relations between financial statement items is known as:Multiple ChoiceInvestment analysis.Financial reporting.Ratio analysis.Risk analysis.Horizontal analysis.