In performing a vertical analysis the base for sales revenues on the income statement is
A) net sales.
B) sales.
C) net income.
D) cost of goods available for sale.

Question

Quizplus · Accepted Answer

Net sales is the most appropriate base for performing a vertical analysis on the income statement because it represents the total amount of revenue generated from sales before any deductions or expenses are subtracted. This allows for a more accurate comparison of each expense item as a percentage of sales.

In Performing a Vertical Analysis the Base for Sales Revenues