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Explain horizontal and vertical analysis. Do some research .explain why these methods are used. What can we learn from horizontal and vertical analysis statements? How can results vary compared to other corporations and why can ratios better than using dollars?
COPY AND PASTE Answer in paragraphs, and no picture attachment please.
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Horizontal analysis is the process
of comparing the line of items over some time from comparative
financial statements to track overall trends and performance. It
helps calculate the relative and absolute variances for every line
of an item through a comparative evaluation of financial statements
for two or more periods. While, vertical analysis refers to making
a comparison of each line of the item as a proportion of the base
figure such as assets, liabilities, equity, and sales within the
statement. It is a proportional evaluation of the financial
statement.
Horizontal is used to represents the growth, status, and decline of
an item. On the other hand, vertical analysis helps in determining
and predicting the relative proportion of an item to the common
item in the financial statement.
We can learn to ascertain the trend and changes in an item from
Horizontal analysis while the proportion of items to the common
item of the single accounting year from the vertical
analysis.
The results vary compared to other corporations through vertical
analysis as it helps to compare the results of the financial
statement of one company with another company in the same industry
since it is used to benchmark.
Ratios are better than using dollars because:
. NEED NEW ANSWER ASAP / ANSWER NEVER USED BEFORE Explain horizontal and vertical analysis. Do...
. NEED NEW ANSWER ASAP / ANSWER NEVER USED BEFORE Explain horizontal and vertical analysis. Do some research .explain why these methods are used. What can we learn from horizontal and vertical analysis statements? How can results vary compared to other corporations and why can ratios better than using dollars? COPY AND PASTE Answer in paragraphs, and no picture attachment please. *************NEEDS TO BE AN ORIGINAL SOURCE ANSWER NEVER USED BEFORE************ PLEASE ANSWER THROUGHLY ALL ANSWERS
. NEED NEW ANSWER ASAP / ANSWER NEVER USED BEFORE Explain horizontal and vertical analysis. Do some research .explain why these methods are used. What can we learn from horizontal and vertical analysis statements? How can results vary compared to other corporations and why can ratios better than using dollars? COPY AND PASTE Answer in paragraphs, and no picture attachment please. *************NEEDS TO BE AN ORIGINAL SOURCE ANSWER NEVER USED BEFORE************ PLEASE ANSWER THROUGHLY ALL ANSWERS
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