Explain difference between vertical and horizontal analysis

Reference no: EM131522399

Question: 1. Identify the three types of comparisons commonly used in financial statement analysis.

2. Explain the difference between vertical and horizontal analysis.

3. In performing vertical analysis, we express each item in a financial statement as a percentage of a base amount. What base amount is commonly used for income statement accounts? For balance sheet accounts?

Reference no: EM131522399

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