Vertical analysis is a method that reduces all numbers on the statement of income to a percentage of revenue.

Question

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Vertical analysis is a financial method where each entry in the main categories of the income statement (such as revenue, cost of goods sold, or net income) is represented as a percentage of total sales/revenue. This allows for easier comparison and analysis of financial statements over different periods or between companies.

Vertical Analysis Is a Method That Reduces All Numbers on the Statement