TRUE OR FALSE STATEMENT 1. Horizontal analysis is a technique for evaluating a f

Question

TRUE OR FALSE STATEMENT 1. Horizontal analysis is a technique for evaluating a financial statement item in the current year with other items in the current year 2. Common size analysis expresses each item within a financial statement in terms of a percent of a base amount. 3. Vertical analysis is useful in making comparisons of companies of different sizes. 4. A solvency ratio measures the income or operating success of an enterprise for a given 5. Profitability ratios are frequently used as a basis for evaluating management's operating 6. Profitability ratios measure the ability of the enterprise to survive over a long period of period of time. effectiveness time.

Explanation / Answer

1) False , horizontals analysis we do analysis horizontally ( by years)

2) True Statement

3) True Statement

4) False , it measures debt vs capital allocation, financial leverage

5) True

6) False

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