Difference Between Vertical and Horizontal Analysis
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What are the differences between vertical and horizontal analysis? Which method would external users most likely use? How about internal users? Discuss the uses of the two analysis methods and how you would use each to analyze a company's performance?
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This solution discusses the difference between vertical and horizontal analyses.
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What are the differences between vertical and horizontal analysis? Which method would external users most likely use? How about internal users? Discuss the uses of the two analysis methods and how you would use each to analyze a company's performance?
Horizontal analysis deals with comparison of different items in the income statement and the balance sheet over the period of time. For example, accounts receivable amount of the year 2008 can be compared with the amount of accounts receivable of the year 2009. The horizontal analysis of financial ...
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