Statement Analysis: Comparative Statements FLASHCARDS.

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Presentation transcript:

Statement Analysis: Comparative Statements FLASHCARDS

Horizontal analysis Computing the percentage change for individual items in the financial statements from year to year Horizontal analysis

Vertical analysis Computing the relationship between each item on a financial statement to some base amount on the statement Vertical analysis

Trend analysis Comparing selected ratios and percentages over a period of time Trend analysis

Ratio analysis Computing the relationship between various items in the financial statements Ratio analysis

Industry averages Financial ratios and percentages reflecting averages for similar companies Industry averages

For additional reinforcement of accounting terms, visit the crossword puzzle on this Web site.