Which of the Following Represents the Most Appropriate Description of Vertical

Multiple Choice

Which of the following represents the most appropriate description of vertical analysis?

A) An analyst prepares pro forma financial statements for the next five years.
B) An analyst compares financial ratios of a company over the last five years.
C) An analyst compares financial ratios for the current year for two companies.
D) An analyst prepares ratios to determine what sales are required to earn a profit.
E) An analyst develops ratios to determine how much the company needs to borrow.