Which of the following is the base amount when performing vertical analysis of an income statement?
A)Sales revenue
B)Gross profit
C)Net sales
D)Total expenses

Question

Quizplus · Accepted Answer

Net sales is the base amount when performing vertical analysis of an income statement. It represents the total amount of sales revenue after deducting returns, discounts, and allowances. All other line items on the income statement are expressed as a percentage of net sales.

Which of the Following Is the Base Amount When Performing