Asked by Emily_ nicole on Jul 04, 2024
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Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.
Horizontal Analysis
A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.
Vertical Analysis
A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.
Ratio Analysis
The quantitative analysis of financial information in a company's financial statements, used to evaluate performance, liquidity, profitability, and solvency.
- Acquire insight into the elementary frameworks and tools employed in the scrutiny of financial statements.
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Learning Objectives
- Acquire insight into the elementary frameworks and tools employed in the scrutiny of financial statements.
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