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

Question

Quizplus · Accepted Answer

In vertical analysis of an income statement, each item is expressed as a percentage of sales. This helps in determining the proportion of revenue that is being consumed by each expense item, and allows for better comparison across periods and with industry benchmarks.

In Vertical Analysis of an Income Statement, Each Item Is