BBA 2201 Columbia Southern University Methods of Financial Statement Analysis Discussion

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yvfunoebja98

Business Finance

BBA 2201

Columbia Southern University

BBA

Description

Two popular methods of financial statement analysis are horizontal and vertical. In your own opinion, which method of analysis reveals more usable data? Or, if you are asked to complete a financial analysis for your organization, which method would you choose, and why?

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Explanation & Answer

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Financial Statement Analysis

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Financial Statement Analysis
In financial statement analysis, the two primary methods used in accounting are the
horizontal and vertical techniques. The financial statement gives a proportional analysis for the
vertical method, meaning every item is a percentage of another. For instance, every accounting
entry...


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