Managerial Accounting $-$ In Class Notes $-$ Chapter $13$

Analysis tool # $1.$ What is horizontal analysis? Comparative Financial Statements vs Trend Analysis?

Analysis tool # $2.$ What is vertical analysis? What are the most common bases for two common$-$size statements?

Analysis tool # $3.$ What are the four building blocks for Ratio Analysis and $($in summary$)$ what do they measure and who uses them?

List the main liquidity and efficiency ratios.

List the main solvency ratios.

What are the main profitability ratios?

List the main valuation $($market prospects$)$ ratios.

Name a few limitations of financial statement analysis