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Principles of Accounting > Analysis > Flashcards

Analysis Flashcards

1
Q

Horizontal Analysis

A

Comparing year to year

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2
Q

Horizontal Analysis Equation

A

(current year - Previous year)/ previous year

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3
Q

Vertical Analysis

A

Compares all individual accounts against total sales/revenue

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4
Q

Vertical Analysis equation on a Balance Sheet

A

Individual accounts/ total assets

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5
Q

Vertical Analysis on an Income Statement

A

Individual accounts/ Total revenue

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Principles of Accounting (4 decks)

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