Vertical analysis of comparative financial statements includes the
A)development of common-size statements.
B)calculation of dollar amount changes and percentage changes from the previous to the current year.
C)use of an index number.
D)All of these choices.

Question

Quizplus · Accepted Answer

Vertical analysis involves the development of common-size statements, where each line item is expressed as a percentage of a base figure within the same period, facilitating comparison across companies or periods.

Vertical Analysis of Comparative Financial Statements Includes the