Ratio analysis:

Multiple Choice

is required by GAAP as part of every company's income statement and balance sheet.

will always identify the best investment decision.

will tell you how a company will perform in the future.

$$ allows you to evaluate how well a company has performed relative to other different$-$sized companies within the same industry.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.

Horizontal analysis:

Multiple Choice

is used to identify trends over time.

identifies the relative contribution made by each financial statement line item.

$$ provides an understanding of the relationships among various items on financial statements.

involves comparing amounts across different financial statements.