The two major techniques for financial analysis are
A) horizontal analysis and circular analysis.
B) receivable analysis and profitability analysis.
C) vertical analysis and budget analysis.
D) common-size analysis and ratio analysis.

Question

Quizplus · Accepted Answer

The two major techniques for financial analysis are common-size analysis and ratio analysis. Common-size analysis involves expressing financial statement items as a percentage of a base amount, while ratio analysis involves comparing different financial statement variables to evaluate a company's financial performance. Both of these techniques are widely used by analysts and investors to assess the financial health of a company.

The Two Major Techniques for Financial Analysis Are