Multiple Choice
Which of the following is the definition of vertical analysis?
A) Vertical analysis is the practice of comparing a company with other companies that are leaders.
B) Vertical analysis is the analysis in which percentages are computed by selecting a base year as 100% and expressing amounts for following years as a percentage of the base amount.
C) Vertical analysis is the analysis of a financial statement that reveals the relationship of each statement item to a specified base, which is the 100% figure.
D) Vertical analysis is the study of percentage changes in comparative financial statements.
Correct Answer:
Verified
Correct Answer:
Verified
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