In vertical analysis,each item is expressed as a percentage of:
A) Total expenses on the income statement.
B) Net income on the income statement.
C) Sales on the income statement.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

In vertical analysis, each item is expressed as a percentage of sales on the income statement. This allows for easier comparison of accounts over time and between companies, as it provides insight into the relative size of each item in relation to revenue.

In Vertical Analysis,each Item Is Expressed as a Percentage Of