Asked by Victor Bedoya on Jul 08, 2024
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The three basic tools of analysis are horizontal analysis vertical analysis and ratio analysis.
Horizontal Analysis
Horizontal analysis is a financial analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time, aiding in the assessment of financial performance and trends.
Vertical Analysis
A financial analysis method that expresses each item in a financial statement as a percentage of a base amount, facilitating period-to-period and company-to-company comparisons.
Ratio Analysis
A technique for evaluating financial statements that expresses the relationship between selected financial statement data.
- Comprehend the objectives and techniques involved in analyzing financial statements, emphasizing horizontal and vertical analysis.
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Learning Objectives
- Comprehend the objectives and techniques involved in analyzing financial statements, emphasizing horizontal and vertical analysis.
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