To identify: The appropriate answer for the given statement.
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.
Want to see more full solutions like this?
Chapter 14 Solutions
Managerial Accounting, Introduction To Financial Accounting, Myaccountinglab With Etext And Access Card For Managerial Acct., Myaccountlab With Etext . For Intro To Financial Acct. (4th Edition)
- Overhead variance?arrow_forwardFind Cost account answerarrow_forwardHurwitz, LLC sells a parcel of waterfront land and a residential condo building with an adjusted tax basis of $100,000 and 50,000, respectively for $500,000. The original purchase price Hurwitz, LLC allocated to the building was $600,000. Hurwitz LLC has deducted $550,000 in depreciation expense. Hurwitz, LLC's realized gain on this transaction is $350,000. If Hurwitz LLC takes back a note as part of the proceeds, what is Hurwitz LLC's gross profit percentage? A. 83.33% B. 71.43% C. 70% D. 50% E. 30%arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education