The difference between vertical and horizontal analysis.

Question

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Answer 1

Question

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

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Answer 2

Question

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

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Answer 3

Question

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

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Answer 4

Question

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

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Answer 5

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

Answer 6

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.

Answer 7

Chapter 13, Problem 1LO

To determine

The difference between vertical and horizontal analysis.

Answer 8

Expert Solution & Answer

Explanation of Solution

The difference between vertical and horizontal analysis is as follows:

Horizontal analysis:

The comparison of an item of a financial statement of one year against the same item of the same financial statement of another year to determine the relation between the two items is referred to as horizontal analysis.
This analysis compares the financial items over several time period.

Vertical analysis:

The comparison of an item of a financial statement against the total amount of the same financial statement to determine the relation between the two items is referred to as vertical analysis.
This analysis compares many financial items within the same period of time.