Vertical analysis is also known as:
A)trend analysis
B)horizontal analysis
C)ratio analysis
D)common size statements

Question

Quizplus · Accepted Answer

Vertical analysis is also commonly referred to as common size statements because it involves expressing each financial statement item as a percentage of a base amount, such as total assets or net sales. This allows for easy comparison between different periods or companies, as it shows the relative importance of each item in the overall financial picture.

Vertical Analysis Is Also Known As