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State difference between horizontal analysis and vertical analysis on the basis of period?
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State difference between horizontal analysis and vertical analysis on ...
Under horizontal analysis an analyst compares the financial statement of the company for two more accounting periods, it can be used on any item in the financial statement company so if company wants to see whether its sales for current year is good or not it will compare the sales for the year 2010 with sales for year 2009 or for previous years. It is a time series analysis in the sense that it shows comparison of financial data for several years against a chosen base year. It is also called dynamic analysis of the financial statements.Vertical analysis is done to review and analysis the financial statements for a year only and therefore it is also called static analysis. Under this method each entry for assets, liabilities and equities in a balance sheet is represented as a percentage of the total account.Hope u've understood....
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State difference between horizontal analysis and vertical analysis on the basis of period?
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State difference between horizontal analysis and vertical analysis on the basis of period? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about State difference between horizontal analysis and vertical analysis on the basis of period? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for State difference between horizontal analysis and vertical analysis on the basis of period?.
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