All of the Following Statements Regarding Vertical Analysis Are True

Multiple Choice

All of the following statements regarding vertical analysis are true except

A) vertical analysis may be prepared for several periods to analyze changes in relationships over time
B) in a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets
C) in a vertical analysis of an income statement, each item is stated as a percent of total expenses
D) major differences between a company's vertical analysis and industry averages should be investigated