What is the best way to remember how to do a horizontal and vertical analysis of a financial statement?!?
2007-05-03 15:51:35 · 3 answers · asked by Nicole 3 in Education & Reference ➔ Higher Education (University +)
Well ssssooorrryyy....i'm only a college student with more than one class to study for. I'm having brain lapses and i'm starting to freakin panic here!
2007-05-03 15:58:14 · update #1
Horizontal analysis is comparing the balance sheet, income statement, and statement of cash flows side by side (horizontally) to consider year-to-year changes in accounts. You're checking for trends.
Vertical analysis is going down (vertical) one of the statements in response to anything problematic found in the horizontal analysis. You look at percentages, markups, and make sure everything adds up.
Sorry this isn't a very detailed description, it's been awhile since I did accounting, and we didn't focus on these types of analyses.
2007-05-03 16:13:46 · answer #1 · answered by Buying is Voting 7 · 0⤊ 0⤋
Do you have your book; just get the formula out and write down the equation on a 3x5 card and see if that helps for remembering.....Good Luck.
2007-05-03 16:00:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Pay attention in class, do your homework, and don't wait until the last minute to cram.
2007-05-03 15:55:18 · answer #3 · answered by Anonymous · 0⤊ 1⤋