1. Statement Analysis: Comparative Statements FLASHCARDS

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

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

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

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

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

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