Which of the following types of analysis include common-sized financial statements?
A)Trend analysis
B)Vertical analysis
C)Ratio analysis
D)Horizontal analysis

Question

Quizplus · Accepted Answer

Vertical analysis includes common-size financial statements, which express each financial statement item as a percentage of a base amount, such as net sales for the income statement or total assets for the balance sheet. Trend analysis looks at changes in financial statement items over time, horizontal analysis compares financial statement items from period to period, and ratio analysis involves calculating ratios from financial statement information.

Which of the Following Types of Analysis Include Common-Sized Financial