In performing a vertical analysis of an income statement, which of the following is generally used as the base amount?
A)Net sales
B)Total expenses
C)Gross sales
D)Gross profit

Question

Quizplus · Accepted Answer

Net sales is generally used as the base amount in performing a vertical analysis of an income statement. This allows for each item on the income statement to be represented as a percentage of net sales.

In Performing a Vertical Analysis of an Income Statement, Which