Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) In horizontal percentage analysis, an item from the financial statements is expressed as a percentage of the same item from a previous year's financial statements.
_____ b) The reason behind a financial statement ratio or percentage analysis result is usually self evident and does not require further study or analysis.
_____ c) Horizontal analysis for several years can be done by choosing one year as a base year and calculating increases or decreases in relation to that year.
_____ d) Vertical analysis compares two or more financial statement items within the same time period.
_____ e) One form of horizontal analysis is the preparation of common size financial statements.