BUSINESS HIGH SCHOOL-ACCOUNTING II

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BUSINESSHIGH SCHOOL-ACCOUNTING II
Comparative Income Statement
Analyzing and Interpreting Financial Statements
Chapter 12
Horizontal Analysis
Base Year
Vertical Analysis
Comparative Balance Sheet
Working Capital
Ratio Analysis
Financial Strength Ratios
Liquidity Ratios
Profitability Ratios

• Accounting II Essential Learning
  Expectations-Chapter 12
• Three techniques used to analyze and interpret
  financial statements are horizontal analysis,
  vertical analysis, and ratio analysis.
• Working capital represents the excess current
  assets available to continue operations, purchase
  inventory, obtain credit, or expand operations.

Content Vocabulary Base Year Comparability Profit
ability