Three of the most common tools of financial analysis are:
A)Financial reporting,sensitivity analysis,transactional analysis.
B)Fair presentation,variance analysis,financial reporting.
C)Horizontal analysis,vertical analysis,ratio analysis.
D)Relativity analysis,financial reporting,fair value analysis.
E)Liquidation analysis,political analysis,fair value analysis.

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over a period of time, vertical analysis looks at the proportion of different items in a financial statement, and ratio analysis uses ratios to analyze the financial performance of a company. These three tools are commonly used in financial analysis. The other options listed are either not tools commonly used in financial analysis or are not correct phrases (such as "relativity analysis").

Three of the Most Common Tools of Financial Analysis Are