NMILLS_XACC_WK7_CHPT-1 - Nicole Mills XACC/280 Week 7...

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Nicole Mills XACC/280 Week 7 Checkpoint Lisa Pendleton “We use various tools to evaluate the significance of financial statement data. Three commonly used tools are these: Horizontal analysis evaluates a series of financial statement data over a period of time. Vertical analysis evaluates financial statement data by expressing each item in a financial statement as a percent of a base amount. Ratio analysis expresses the relationship among selected items of financial statement data. Horizontal analysis is used primarily in intracompany comparisons. Two features in published financial statements facilitate this type of comparison: First, each of the basic financial statements presents comparative financial data for a minimum of two years. Second, a summary of selected financial data is presented for a series of five to ten years or more. Vertical analysis is used in both intra- and intercompany comparisons. Ratio analysis is used in all three types of comparisons.” (Waygandt, Kimmel, & Kleso, 2008,
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This note was uploaded on 03/25/2012 for the course BUSINESS 200 taught by Professor Unknown during the Fall '11 term at University of Phoenix.

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NMILLS_XACC_WK7_CHPT-1 - Nicole Mills XACC/280 Week 7...

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