An expression of the amount of each item in a statement as a percentage of some designated total for comparative purposes is called
A) vertical analysis.
B) return on total assets.
C) earnings per share.
D) horizontal analysis.

Question

Quizplus · Accepted Answer

This type of analysis is known as vertical analysis, where each item on a financial statement is shown as a percentage of a designated total, typically sales or total assets, for comparison purposes. Return on total assets and earnings per share are specific financial ratios, while horizontal analysis compares financial data over time.

An Expression of the Amount of Each Item in a Statement