.   D i f f e r e n t i a t e   b e t w e e n   h o r  i z o n t a  l  a n d  v e r t i c a l   a n a l y s i s .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1 .   D i f f e r e n t i a t e   b e t w e e n   h o r  i z o n t a  l  a n d  v e r t i c a l   a n a l y s i s .
2 .   W h a t   i s   t r e n d   a n a l y s i s ?
3 .   S u p p o s e   y o  u   a r e   c o m p a r i n g   t w o   f i r m s   w i t h i n   a n   i n d u s t r y .   O n e   i s   l a r g e   a n d   t h e   o t h e r   i s  s m a l l .   W i l l   r e l a t i v e   o r   a b s o l u t e   n u m b e r s   b e   o f   m o r e   v a l u e   i n   e a c h   c a s e ? 
4 .   W h a t   k i n d s   o f   s t a t i s t i c s   c a n   h e l p   e v a l u a t e   r e l a t i v e   s i z e ? 
5 .   B r o w n   C o m p a n y   e a r n e d   5 . 5 %   o n   s a l e s   i n   2 0 0 7 .   W h a t   f u r t h e r   i n f o r m a t i o n   w o u l d   b e  n e e d e d   t o   e v a l u a t e   t h i s   r e s u l t ? 

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