Managerial Accounting (4th Edition)
4th Edition
ISBN: 9780133428377
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 14, Problem 1QC
To determine
To identify: The appropriate answer for the given statement.
Expert Solution & Answer
Answer to Problem 1QC
Option c. A year to year comparison of a company’s performance in two different years is provided by horizontal analysis.
Explanation of Solution
The methods of analyzing company’s performance by analyzing financial performance are:
- 1. Horizontal analysis
- 2. Vertical analysis
- 3. Ratio analysis
a.
Vertical analysis is not the correct option because vertical analysis compares the companies of different size and considers only one-year analysis.
b.
Ratio analysis is not the correct option because ratio analysis analyses the relationship between the components of the financial performance.
c.
Horizontal analysis is the correct option because horizontal analysis analyzes the year to year performance of the companies in two different years.
d.
Time study analysis is not the correct option because time study analysis the purposes of your own.
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Chapter 14 Solutions
Managerial Accounting (4th Edition)
Ch. 14 - Prob. 1QCCh. 14 - 2. (Learning Objective 1) A trend study compares...Ch. 14 - Prob. 3QCCh. 14 - Prob. 4QCCh. 14 - Prob. 5QCCh. 14 - Prob. 6QCCh. 14 - Prob. 7QCCh. 14 - Prob. 8QCCh. 14 - Prob. 9QCCh. 14 - Prob. 10QC
Ch. 14 - Prob. 14.1SECh. 14 - Prob. 14.2SECh. 14 - Prob. 14.3SECh. 14 - Prob. 14.4SECh. 14 - Prob. 14.5SECh. 14 - Prob. 14.6SECh. 14 - Prob. 14.7SECh. 14 - Prob. 14.8SECh. 14 - Prob. 14.9SECh. 14 - Prob. 14.10SECh. 14 - Prob. 14.11AECh. 14 - Prob. 14.12AECh. 14 - Prob. 14.13AECh. 14 - Prob. 14.14AECh. 14 - Prob. 14.15AECh. 14 - Prob. 14.16AECh. 14 - Prob. 14.17AECh. 14 - Prob. 14.18AECh. 14 - Prob. 14.19AECh. 14 - Prob. 14.20AECh. 14 - Prob. 14.21AECh. 14 - Prob. 14.22BECh. 14 - Prob. 14.23BECh. 14 - Prob. 14.24BECh. 14 - Prob. 14.25BECh. 14 - Prob. 14.26BECh. 14 - Prob. 14.27BECh. 14 - Prob. 14.28BECh. 14 - Prob. 14.29BECh. 14 - Prob. 14.30BECh. 14 - Prob. 14.31BECh. 14 - Prob. 14.32BECh. 14 - Prob. 14.33APCh. 14 - Prob. 14.34APCh. 14 - P14-35A Effect of transactions on ratios (Learning...Ch. 14 - Prob. 14.36APCh. 14 - Prob. 14.37APCh. 14 - Prob. 14.38BPCh. 14 - P14-39B Comprehensive analysis (Learning...Ch. 14 - Prob. 14.40BPCh. 14 - Prob. 14.41BPCh. 14 - Prob. 14.42BPCh. 14 - Discussion Questions 1. Describe horizontal...Ch. 14 - Prob. 14.45ACTCh. 14 - Prob. 14.46ACT
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