Match each definition that follows with the term (a-h) it defines.
-a percentage analysis of increases and decreases in related items on comparative financial statements
A)solvency
B)leverage
C)times interest earned
D)horizontal analysis
E)vertical analysis
F)common-sized financial statements
G)current position analysis
H)profitability analysis

Question

Quizplus · Accepted Answer

Horizontal analysis is the percentage analysis of increases and decreases in related items on comparative financial statements.

Answer: E
 Vertical analysis is the expression of each item in a financial statement as a percentage of a base amount.

Answer: F
 Common-sized financial statements are financial statements that express all items as percentages of a common base amount.

Answer: G
 Current position analysis is an analysis of a company's ability to pay its current liabilities using its current assets.

Answer: H
 Profitability analysis is an analysis of a company's ability to generate profit.

The terms not matched with a definition are:
B)leverage
C)times interest earned
A)solvency

Match Each Definition That Follows with the Term (A-H) It