BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Finance
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Evaluating Investments
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Financial Management
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Financial Institution
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Detailed explanation-1: -Horizontal analysis is used in financial statement analysis to compare historical data, such as ratios, or line items, over a number of accounting periods.
Detailed explanation-2: -Financial statement analysis is the process of analyzing a company’s financial statements for decision-making purposes.
Detailed explanation-3: -Vertical analysis, also called common-size analysis, is a technique that expresses each financial statement item as a percent of a base amount.
Detailed explanation-4: -Ratio analysis This specific type of analysis involves a company comparing the information about line items highlighted on its financial statements to understand its profitability, solvency, operational performance and liquidity.