A primary responsibility of the Accounting Department is to prepare the companys financial statements. Throughout Accounting I and II you have had an opportunity to work with the balance sheet, income statement, statement of owners equity, and to a lesser extent the statement of cash flows. Financial statement analysis is used, in part, to examine the relationship between various accounts that appear on the financial statements.

Here is your challenge question:

The two most common methods used for financial statement analysis are:

1. ____________________
2. ____________________

>>> NOTE > the correct answer is NOT horizontal or vertical analysis.