Financial Statement Flashcards
The process of evaluating risk, performance, financial health, and future prospects of a business by subjecting financial statement data
Financial Statement
To provide information about the financial position, performance, and changes
Financial Statement
3 Financial Statement of Analysis
Horizontal analysis
Vertical analysis
Ratio analysis
It is also called trend analysis
Horizontal Analysis
A technique for evaluating a series of financial statement data over a period of time
Horizontal Analysis
Also called common-size analysis
Vertical analysis
A technique that expresses each financial statement item as a percentage of a base amount
Vertical analysis
Expresses the relationship among selected items of financial statement data
Ratio analysis
Expressed in terms of a percentage, rate, or a simple proportion
Ratio analysis
