Match each definition that follows with the term (ag) it defines. 1. occurs when a company abandons a segment

2. requires a restatement of prior-period financial statements

3. an analysis of a company's ability to pay its current liabilities

4. focuses on a company's ability to generate net income

5. useful for comparing one company to another or a company with industry averages

6. an analysis showing the percentage each line item is of the total. For example, on an income statement each line may be shown as a percentage of gross sales.

7. an analysis of the relationship of each component in a financial statement compared to the prior year to show the percentage increase or decrease. a. discontinued operations

b. change from one generally accepted accounting principle to another

c. horizontal analysis

d. vertical analysis

e. common-sized financial statements

f. current position analysis

g. profitability analysis