1. BUSINESS HIGH SCHOOL-ACCOUNTING II
Analyzing and
Interpreting Financial
Statements
Chapter 12
Comparative Income Statement
Horizontal
Analysis
Base Year
Vertical
Analysis
Comparative Balance Sheet
Working
Capital
Ratio
Analysis
Financial Strength Ratios
Liquidity Ratios
Profitability Ratios
Accounting II Essential Learning Expectations-Chapter 12:
Three techniques used to analyze and interpret financial statements are horizontal analysis, vertical analysis, and ratio analysis.
Working capital represents the excess current assets available to continue operations, purchase inventory, obtain credit, or expand operations.
Content Vocabulary:
Base Year
Comparability
Profitability