Vertical percentage analysis expresses each item on an income statement as a percentage of a certain base.

Name: Vertical percentage analysis expresses each item on an income statement as a percentage of a certain base.
Brand: Quizplus
Rating: 4.8 (29 reviews)

Question

Quizplus · Accepted Answer

Vertical percentage analysis, also known as common size analysis, involves expressing each item on a financial statement (such as an income statement) as a percentage of a base item (typically sales revenue for income statements), facilitating comparison across periods or companies.

Vertical Percentage Analysis Expresses Each Item on an Income Statement