Vertical analysis looks at the percentage change in a line item from one year to the next.

Name: Vertical analysis looks at the percentage change in a line item from one year to the next.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Vertical analysis is a method where each line item on a financial statement is listed as a percentage of another item. For example, on an income statement, each line item is shown as a percentage of gross sales, not the percentage change from one year to the next.

Vertical Analysis Looks at the Percentage Change in a Line