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Questions and Answers
Which technique of financial statement analysis focuses on evaluating a series of financial statement data over a period of time?
Which technique of financial statement analysis focuses on evaluating a series of financial statement data over a period of time?
- Trend analysis
- Financial ratios
- Vertical analysis
- Horizontal analysis (correct)
Which technique of financial statement analysis will be discussed in the next lesson?
Which technique of financial statement analysis will be discussed in the next lesson?
- Trend analysis
- Financial ratios (correct)
- Vertical analysis
- Horizontal analysis
What is the objective of financial statement analysis?
What is the objective of financial statement analysis?
- To make economic decisions (correct)
- To determine the magnitude of change
- To evaluate risks and performance
- To analyze future prospects
How many kinds of FS analysis techniques are mentioned in the text?
How many kinds of FS analysis techniques are mentioned in the text?
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What does horizontal analysis reveal about an account?
What does horizontal analysis reveal about an account?
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Study Notes
Financial Statement Analysis Techniques
- Trend analysis focuses on evaluating a series of financial statement data over a period of time.
Objective of Financial Statement Analysis
- The objective of financial statement analysis is to analyze and interpret financial data to make informed decisions.
Upcoming Lesson
- The next lesson will cover vertical analysis.
Types of Financial Statement Analysis
- There are two kinds of financial statement analysis techniques mentioned in the text.
Horizontal Analysis
- Horizontal analysis reveals the changes in an account over time, showing the percentage change or increase/decrease in the value of an account from one period to another.
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