Vertical analysis is also called
A) common size analysis.
B) horizontal analysis.
C) ratio analysis.
D) trend analysis.

Question

Quizplus · Accepted Answer

Vertical analysis is also known as common size analysis, as it involves calculating the percentages of various items on the financial statement to compare them and identify trends. Horizontal analysis looks at changes over time, ratio analysis determines the relationship between different items, and trend analysis looks at patterns over time.

Vertical Analysis Is Also Called