In vertical analysis, line items on the income statement are generally expressed as a percentage of
A) net income.
B) net sales.
C) cost of goods sold.
D) total assets.

Question

Quizplus · Accepted Answer

In vertical analysis, line items on the income statement are generally expressed as a percentage of net sales. This helps to analyze the relationship between revenue and expenses, and determine the proportion of each line item in relation to the company's overall revenue.

In Vertical Analysis, Line Items on the Income Statement Are