Pope Carter
04/18/2024 · Middle School
Which of the following descriptive analytics techniques summarizes changes in financial performance over tim counts totals, sums and averages vertical and horizontal analysis
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The descriptive analytics technique that summarizes changes in financial performance over time is **vertical and horizontal analysis**.
- **Vertical analysis** involves analyzing financial statements by expressing each line item as a percentage of a base item (e.g., total revenue or total assets) for a specific period, allowing for comparison within the same period.
- **Horizontal analysis** involves comparing financial data over multiple periods, highlighting trends and changes in performance over time.
While counts, totals, sums, and averages are useful descriptive statistics, they do not specifically focus on summarizing changes over time like vertical and horizontal analysis do.
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Vertical and horizontal analysis summarize changes in financial performance over time.
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