Auditors find _____ especially useful because it reveals the relationship of each item on the income statement to a specified base.
A)ratio analysis
B)vertical percentage analysis
C)current ratio analysis
D)asset valuation

Question

Quizplus · Accepted Answer

Vertical percentage analysis is particularly useful for auditors because it allows them to see how each item on the income statement relates to a total figure, such as total sales or total assets, by expressing each item as a percentage of that total. This helps in understanding the proportionate significance of each item and in making comparisons over time or across companies.

Auditors Find _____ Especially Useful Because It Reveals the Relationship