Acc 280 Week 4 DQ1 and DQ 2

Feb 3rd, 2012
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Course: Business and Management
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The differences between vertical and horizontal analysis are vertical is used in both intra and inter company comparisons and horizontal is used primarily in intra company comparisons. Horizontal analysis also referred to as trend analysis is used to evaluate the financial statements over a specified period of time and may compare the increases or decreases in changes of net sales. It may be used on the balance sheet to show changes in the assets section to net, in the liability section to current liabilities and to te stockholder's equity section to retained earnings. Horizontal analysis of he income statement may predict profitability and show changes in increase or decrease of net sales, cost of goods and total operating expenses. A retained earnings statement analyzed horizontally will show increases or decreases in net income and dividends on the common stock. Vertical analysis expresses each item in the

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