Matching
Match each definition with its item .
Premises:
Occurs when a company abandons a segment.
Something that is both unusual and infrequent.
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.
Focuses on a company’s ability to generate net income
An analysis of a company’s ability to pay its current liabilities.
This requires a restatement of prior period financial statements.
A percentage analysis of increases and decreases in related items in comparative financial statements.
Responses:
Horizontal analysis
Extraordinary Items
Current position analysis
Vertical analysis
Discontinued Operations
Profitability analysis
Common-sized financial statements
Change from one generally accepted accounting principle to another
Correct Answer:
Premises:
Responses:
Occurs when a company abandons a segment.
Something that is both unusual and infrequent.
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.
Focuses on a company’s ability to generate net income
An analysis of a company’s ability to pay its current liabilities.
This requires a restatement of prior period financial statements.
A percentage analysis of increases and decreases in related items in comparative financial statements.
Premises:
Occurs when a company abandons a segment.
Something that is both unusual and infrequent.
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.
Focuses on a company’s ability to generate net income
An analysis of a company’s ability to pay its current liabilities.
This requires a restatement of prior period financial statements.
A percentage analysis of increases and decreases in related items in comparative financial statements.
Responses:
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