Which approach converts financial statement numbers to percentages of total assets or total sales?
A) Horizontal analysis
B) Vertical analysis
C) Ratio analysis
D) Variance analysis

Question

Quizplus · Accepted Answer

Vertical analysis converts financial statement numbers to percentages of total assets or total sales. Horizontal analysis compares financial statement numbers to past periods, while ratio analysis compares different financial numbers to each other. Variance analysis compares actual performance to budgeted or expected performance.

Which Approach Converts Financial Statement Numbers to Percentages of Total