BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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account form
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report form
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basic form
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equal form
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Detailed explanation-1: -Comparative Statements: These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods.
Detailed explanation-2: -Horizontal analysis is valuable because analysts assess past performance along with the company’s current financial position or growth. Trends emerge, and these can be used to project future performance. Horizontal analysis can also be used to benchmark a company with competitors in the same industry.
Detailed explanation-3: -One of the most effective ways to compare two businesses is to perform a ratio analysis on each company’s financial statements. A ratio analysis looks at various numbers in the financial statements such as net profit or total expenses to arrive at a relationship between each number.
Detailed explanation-4: -Report Format This will have only one column and it is the more traditional way of presenting the statement of financial position. In this format, the assets appear first, followed by liabilities and equity of a company. In both formats, the assets and liabilities are bifurcated into current and long term.