
Shante B.
asked 08/23/14What is the significance between the methods of analysis : horizontal analysis, vertical analysis, and ratio analysis.
how does the financial information is used help to make a particular decision?A
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1 Expert Answer
Sherryse H. answered 09/12/14
Tutor
3
(1)
Accounting, Income Tax, Excel
Accounting:
Vertical analysis of a financial statement ... each line item on a financial statement is listed as a percentage of another item ...
Horizontal analysis is the comparision of historical financial information against a variety of reporting periods ...
Ratio analysis involves comparing balance sheet items : assets, liabilities, equity...
e.g. debt/equity ...
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Bob A.
A vertical study is when you study the same thing over time. Like the Framingham Heart Study, you find a group people and study how things happen to them over many years. Sometimes the group you study is a particular group to see how that group with certain criteria develops. (Maybe you study people who lived within 50 miles or Chernobyl) Sometimes the group is random and representative of a population.
08/23/14