Please explain vertical and horizontal analysis to a beginning accounting student.
What purpose do they serve?
ANSWER:
in order to understand the financial information more meaningfully, companies do vertical analysis and horizontal analysis.
Vertical analysis basically involves finding relationship between a base amount which is taken as 100% and other related items. For example, in vertical analysis of income statement, sales figure is taken as base amount (100% amount) and other expense items are calculated as percentage of the sales. It shows the proportion of each expense item in the operations.
Horizontal analysis entails comparing historical data of company over past years to reveal the trends in various operational elements.In this analysis also a base year is chosen which is from the past and relative to which next each years financial statements figures are restated.
Please explain vertical and horizontal analysis to a beginning accounting student. What purpose do they serve?
What is a horizontal analysis in terms of financial accounting? What is a vertical analysis? Why do companies perform both when analyzing their financials?
. 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
. 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
Why is a galvanometer used in a Wheatstone bridge? What purpose does it serve? Please explain.
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