ACC: 8-2 Horizontal Analysis

What is Horizontal Analysis also known as?

• Market Analysis

• Ratio Analysis

• Trend Analysis

• Vertical Analysis

What is the primary focus of Horizontal Analysis?

• Projecting future financial statements

• Time-based analysis of financial statements across multiple periods

• Analyzing financial statements of different companies

• Comparing financial statements to industry standards

How is the percentage change calculated in Horizontal Analysis?

• (Base Period / Comparison Period) * 100

• (Comparison Period / Base Period) * 100

• ((Comparison Period - Base Period) / Base Period) * 100

• ((Base Period - Comparison Period) / Comparison Period) * 100

What was the trend of RockHill Media's revenue from March to June?

• No change

• Consistent decline

• Fluctuating

• Consistent growth

Why is it difficult to benchmark early stage companies against industry growth?

• Lack of interest from investors

• Regulatory restrictions

• Different growth profiles compared to established competitors

• Lack of financial data

What significant milestone did Disney+ achieve within 24 hours of its launch?

• 1 million subscribers

• 100 million subscribers

• 50 million subscribers

• 10 million subscribers

By March 2021, how many subscribers did Netflix have?

• 208 million

• 44 million

• 100 million

• 50 million

What factor contributed to Disney+'s rapid growth?

• Established market and brand name

• Lack of competition

• Exclusive content

• Lower subscription prices

What was a key finding from the horizontal analysis of RockHill Media's balance sheet in June?

• No changes in accounts receivable

• Decrease in equipment value

• A significant increase in net income

• A large decline in the cash balance

What does a decrease in cash balance, despite an increase in revenue, indicate?

• Poor financial management

• Possible increase in accounts receivable or equipment purchases

• Decrease in market share

• Ineffective pricing strategy