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Which of the following statements regarding horizontal analysis is not true? Multiple Choice Percentage analysis involves computing the percentage relationship between two amounts. A horizontal
Which of the following statements regarding horizontal analysis is not true?
Multiple Choice
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Percentage analysis involves computing the percentage relationship between two amounts.
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A horizontal analysis of cost of goods sold on the income statement includes dividing gross margin by total revenue.
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Horizontal analysis attempts to eliminate the materiality problem of comparing firms of different sizes.
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In horizontal percentage analysis, a financial statement line item is expressed as a percentage of the previous balance of the same item.
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