Advertisements
Advertisements
प्रश्न
Distinguish between Vertical and Horizontal Analysis of financial data.
उत्तर
|
Basis of Difference |
Horizontal Analysis |
Vertical Analysis |
|
Meaning |
It refers to the comparison of an item of the financial statement of one period or periods to its corresponding item of the base accounting period. |
It refers to the comparison of itemitems of the financial statement to the common item of the same accounting period. |
|
Purpose |
Its purpose is to determine the change in an item during an accounting period. The change in the item is expressed either in absolute figures or in percentage or in both terms. |
Its purpose is to determine the proportion of item/items to the common item of the same accounting period. The change in the item is expressed either in ratio or in percentage terms. |
|
Usefulness |
It indicates growth or decline of the item. |
It helps in predicting and determining the future relative proportion of an item to the common item. |
APPEARS IN
संबंधित प्रश्न
List the techniques of Financial Statement Analysis.
State the meaning of Analysis and Interpretation.
State the importance of Financial Analysis?
Analysis simply means ______ data.
Interpretation means ______ data.
The most commonly used tools for financial analysis are ______.
Balance Sheet provides information about financial position of the enterprise ______.
Financial Statements Analysis helps in assessing future trends and thus, helps in forecasting and preparation of ______.
Which of the following is not a limitation of the analysis of financial statements?
Analysis of financial statement is insignificant because it ______.
Analysis of any financial statement comprises ______.
______ analysis involves the comparison of different firm's financial ratios at the same point of time.
