In vertical analysis,all items on this year's income statement would be divided by ________.
A)total assets
B)net income
C)this year's sales
D)sales for the base year

Question

Quizplus · Accepted Answer

In vertical analysis, all items on the income statement are divided by a common base amount which is the total sales or revenues of the current year. This helps to determine the percentage of each item in relation to the total sales, and enables meaningful comparisons across different years or companies. Therefore, choice C, which refers to this year's sales, is the most appropriate answer.

In Vertical Analysis,all Items on This Year's Income Statement Would