Which of the following is the base amount when performing vertical analysis of an income statement?
A)total expenses
B)net sales
C)sales revenue
D)gross profit

Question

Quizplus · Accepted Answer

In vertical analysis of an income statement, the base amount is always the net sales or total revenue. All other items on the income statement are expressed as a percentage of net sales. This allows for easier comparison between different time periods or companies of different sizes.

Which of the Following Is the Base Amount When Performing