Matching
Match each definition that follows with the term (a-h) it defines.
Premises:
an analysis of a company's ability to pay its current liabilities
an event or transaction that is both unusual and infrequent
occurs when a company abandons a segment
a percentage analysis of increases and decreases in related items on comparative financial statements
requires a restatement of prior-period financial statements
focuses on a company's ability to generate net income
useful for comparing one company to another or a company with industry averages
the percentage analysis of the relationship of each component in a financial statement to a total within the statement
Responses:
discontinued operations
current position analysis
profitability analysis
common-sized financial statements
vertical analysis
horizontal analysis
change from one generally accepted accounting principle to another
extraordinary items
Correct Answer:
Premises:
Responses:
an analysis of a company's ability to pay its current liabilities
an event or transaction that is both unusual and infrequent
occurs when a company abandons a segment
a percentage analysis of increases and decreases in related items on comparative financial statements
requires a restatement of prior-period financial statements
focuses on a company's ability to generate net income
useful for comparing one company to another or a company with industry averages
the percentage analysis of the relationship of each component in a financial statement to a total within the statement
Premises:
an analysis of a company's ability to pay its current liabilities
an event or transaction that is both unusual and infrequent
occurs when a company abandons a segment
a percentage analysis of increases and decreases in related items on comparative financial statements
requires a restatement of prior-period financial statements
focuses on a company's ability to generate net income
useful for comparing one company to another or a company with industry averages
the percentage analysis of the relationship of each component in a financial statement to a total within the statement
Responses:
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