A manager examines the financial statements of her company and sees the dollar and percentage change...
A manager examines the financial statements of her company and sees the dollar and percentage change in the accounts payable account from 2017 to 2018 is $10,000, which is a 40% increase from last period. This is troubling to the manager and is an example of:
| Budget analysis. |
| Vertical analysis. |
| Horizontal analysis. |
| Competitor analysis. |
Homework Answers
Answer: Horizontal analysis
Horizontal analysis is tool to analyse the various items stated in financial statement by comparing same item in the base year to know the change during the period and percentage change during the period.
Dollar change =current year amount - base year amount
Percentage = dollar change / base year amount
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A manager examines the financial statements of her company and
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