SOFE SOFA-CFE Exam - Topic 3 Question 56 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 56
Topic #: 3

A technique for analyzing the relationships between the items on an income statement, balance sheet, or statement of cash flows by expressing components as percentages is called:

AVertical analysis

BHorizontal analysis

CFraction analysis

DRatio analysis

Show Suggested Answer

Suggested Answer: A

by Yuki at Jul 29, 2022, 08:49 AM

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Mabel

4 months ago

I had no idea there were so many types of analysis!

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Chantell

4 months ago

Wait, are you sure it's not horizontal analysis?

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Antonette

4 months ago

Vertical analysis is the correct term, for sure!

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Rutha

4 months ago

I thought it was ratio analysis, but I guess not.

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Iola

4 months ago

It's definitely called vertical analysis!

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Tran

5 months ago

I feel like ratio analysis could also be related, but it seems more focused on relationships between different financial metrics rather than just percentages.

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Tamala

5 months ago

I’m a bit confused; I thought horizontal analysis was more about comparing financial statements over time, not percentages.

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Dana

5 months ago

I remember practicing a question about this, and I think vertical analysis was the right term for analyzing items as percentages.

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Jolanda

5 months ago

I think this might be vertical analysis since it deals with percentages on a single statement, but I'm not completely sure.

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Clay

5 months ago

Ah, I remember learning about this in class. The AC-VO queue has the highest default priority, so that's my answer.

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Lashaun

5 months ago

This seems pretty straightforward. I'll just run the grep command and redirect the output to the /root/lines file. As long as I get the file path and command right, I should be good to go.

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