We use vertical analysis to express each income statement item as a percentage of sales.

Name: We use vertical analysis to express each income statement item as a percentage of sales.
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Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each item on a financial statement as a percentage of a base item. For the income statement, the base item is typically sales or revenue. Therefore, we use vertical analysis to express each income statement item as a percentage of sales.

We Use Vertical Analysis to Express Each Income Statement Item