When performing vertical analysis of an income statement,which of the following is usually used as the base?
A) gross sales
B) net sales
C) net income
D) gross margin

Question

Quizplus · Accepted Answer

Net sales is typically used as the base when performing vertical analysis of an income statement, as it allows for a comparison of each expense or revenue relative to the total sales. This allows for a more accurate evaluation of the company's financial performance. Gross sales, net income, and gross margin do not provide as comprehensive of a view when performing vertical analysis.

When Performing Vertical Analysis of an Income Statement,which of the Following