Common methods of financial statement analysis include all of the following except:
A)Incremental analysis.
B)Horizontal analysis.
C)Vertical analysis.
D)Ratio analysis.

Question

Quizplus · Accepted Answer

Incremental analysis is not a common method of financial statement analysis. The common methods include horizontal analysis, vertical analysis, and ratio analysis. Incremental analysis is mainly used in managerial accounting to make decisions about whether to continue or discontinue a particular project or business line.

Common Methods of Financial Statement Analysis Include All of the Following