All of the following statements about vertical analysis are true except
A)Vertical analysis is also called common size analysis.
B)Amounts on the income statement are expressed as a percentage of net sales.
C)Vertical analysis shows the relative size of each item in the statement of financial position.
D)Vertical analysis is also called trend analysis.

Question

Quizplus · Accepted Answer

Vertical analysis is not called trend analysis. It is a technique used to analyze financial statements by expressing each item as a percentage of a base amount, such as net sales or total assets.

All of the Following Statements About Vertical Analysis Are True