Vertical analysis is used to reveal patterns in data covering successive periods.

Question

Quizplus · Accepted Answer

Vertical analysis is a method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account. It is not primarily used to reveal patterns over successive periods, but rather to analyze the structure of a single financial statement at a point in time.

Vertical Analysis Is Used to Reveal Patterns in Data Covering