Vertical analysis
A)is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease)that has taken place.
B)expresses each item in a financial statement as a percent of a base amount.
C)makes it more difficult to compare different companies.
D)is also called trend analysis.

Question

Quizplus · Accepted Answer

Vertical analysis is a method used in financial analysis where each line item on a financial statement is listed as a percentage of a base figure within the statement, making it easier to compare and analyze the financial health of an entity across different periods or with other companies.

Vertical Analysis