When performing vertical analysis of an income statement,the base amount is ________.
A) total expenses
B) net sales revenue
C) sales revenue
D) gross profit

Question

Quizplus · Accepted Answer

When performing vertical analysis of an income statement, the base amount is usually the net sales revenue. This is because net sales revenue is the top line of the income statement and represents the total amount of revenue generated by the company. By using net sales revenue as the base amount, it allows for a comparison of each line item's relative value to the overall revenue generated.

When Performing Vertical Analysis of an Income Statement,the Base Amount