Match these terms to their correct definition.
-express each financial statement line item in percentage terms in order to highlight differences. Typically, this conversion from dollar amounts to percentages is done with horizontal or vertical analysis.
A)Common size statements
B)Cross-sectional analysis
C)Dupont analysis
D)Horizontal analysis
E)Ratio analysis
F)Short-term liquidity ratios
G)Time series analysis
H)Vertical analysis

Question

Quizplus · Accepted Answer

Common size statements involve converting financial statement line items into percentages of a base figure, which is a key feature of vertical analysis.

Match These Terms to Their Correct Definition