In vertical analysis:
A)a base amount is optional.
B)a base amount is required.
C)line items from balance sheets are examined only.
D)line items from income statements are examined only.

Question

Quizplus · Accepted Answer

In vertical analysis, a base amount is required to which all other amounts on the financial statement are compared. This allows for the calculation of percentages and the identification of changes in the relative size of different line items over time.

In Vertical Analysis