47. In analyzing financial statements, horizontal

analysis is a

a. requirement.

b. tool.

c. principle.

d. theory.

48. Horizontal analysis is also called

a. linear analysis.

b. vertical analysis.

c. trend analysis.

d. common size analysis.

49. Vertical analysis is also known as

a. perpendicular analysis.

b. common size analysis.

c. trend analysis.

d. straight-line analysis.

50. In ratio analysis, the ratios are **never** expressed as a

a. rate.

b. negative figure.

c. percentage.

d. simple proportion.

51. The formula for

horizontal analysis of changes since the base period is the current

year amount

a. divided

by the base year amount.

b. minus

the base year amount divided by the base year amount.

c. minus

the base year amount divided by the current year amount.

d. plus the base year amount

divided by the base year amount.

52. Horizontal analysis evaluates a series of

financial statement data over a period of time

a. that has been arranged from the highest

number to the lowest number.

b. that has been arranged from the lowest number

to the highest number.

c. to determine which items are in error.

d. to determine the amount and/or percentage

increase or decrease that has taken place.

53. Horizontal analysis evaluates financial

statement data

a. within a period of time.

b. over a period of time.

c. on a certain date.

d. as it may appear in the future.

54. Assume the following sales data for a

company:

2014 $1,050,000

2013 950,000

2012 800,000

2011 650,000

If

2011 is the base year, what is the percentage increase in sales from 2011 to

2013?

a. 100%

b. 61.5%

c. 46.2%

d. 68.4%

55. Comparative balance sheets are usually

prepared for

a. one year.

b. two years.

c. three years.

d. four years.

56. Horizontal analysis is appropriately

performed

a. only on the income statement.

b. only on the balance sheet.

c. only on the statement of retained earnings.

d. on all three of these statements.