ACC 280 WK 4 DQ 1 DQ 2

# ACC 280 WK 4 DQ 1 DQ 2 - 1.What are the differences between...

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1.What are the differences between vertical and horizontal analysis? Discuss the uses of the two analysis methods and how you would use each to analyze a company’s performance. The main difference between vertical analysis and horizontal analysis is that while horizontal analysis compares the figures under different heads in the income statement and the balance sheet, vertical analysis represents each figure as a percentage of the total along with the change in both over the past year. So, in vertical analysis, the figures are not only compared to the past year, but they are also represented as a percentage of the total cost or total assets/liabilities as may be the case. Comparing two years financial statements or comparing one company's financial statements with other company is called horizontal analysis. If you are comparing sales of two years you will find the difference in sales between two years in % as well as in \$. Vertical analysis bifurcate all components of a statement and relate it to

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ACC 280 WK 4 DQ 1 DQ 2 - 1.What are the differences between...

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