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## ACC 291 Week 4 DQ 3

by: kimwood Notetaker

18

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# ACC 291 Week 4 DQ 3

Marketplace > ACC 291 Week 4 DQ 3
kimwood Notetaker
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ACC 291 Week 4 DQ 3
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This page Study Guide was uploaded by kimwood Notetaker on Friday November 13, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 18 views.

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Date Created: 11/13/15
Week 4 DQ3 Two popular methods of nancial statement analysis are horizontal analysis and vertical analysis What are the differences between these two methods The difference is the type of analysis that they are doing With horizontal analysis they are looking at data over a longer period of time and it is done for intracompany comparisons while the vertical analysis is done for both intracompany and intercompany analysis Vertical analysis does not analyze over as long of a period of time but rather analyzes the individual items contained on the financial statement for which it is analyzing The main difference is the way they analyze the data While one does long term over a period of years and one does individual financial statements they both analyze the financial data of companies Vertical analysis can be done for intercompany analysis which means that it is comparing the data for more than one company while horizontal analysis is done intracompany which means that it is within a company and is looking at trends as well as financial data Horizontal analysis is looking for trends and vertical analysis is considered common size analysis since it is looking at individual items Both types of analysis are helpful and provide information for those looking for further and more in depth information on a certain company or type of company ACC 291

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