Another term for vertical analysis is
A)Common-size analysis.
B)Liquidity analysis.
C)Horizontal analysis.
D)Leverage analysis.

Question

Quizplus · Accepted Answer

Vertical analysis is also known as common-size analysis, as it involves expressing each line item on a financial statement as a percentage of a common base. This helps in comparing the relative proportion of different components in a financial statement over time or across different companies. The other options, liquidity analysis, horizontal analysis, and leverage analysis, are different types of financial analysis that focus on specific aspects of a company's performance, such as its ability to meet short-term obligations, changes in financial trends over time, and its use of debt to finance operations, respectively.

Another Term for Vertical Analysis Is