Vertical analysis is a technique that expresses each item in a financial statement
A) in dollars and cents.
B) as a percentage of the item in the previous year.
C) as a percentage of a base amount.
D) starting with the highest value down to the lowest value.

Question

Quizplus · Accepted Answer

Vertical analysis expresses each item in a financial statement as a percentage of a base amount, such as total sales or total assets, to facilitate comparison.

Vertical Analysis Is a Technique That Expresses Each Item in a Financial