Vertical analysis evaluates financial statement data over different periods of time.

Question

Quizplus · Accepted Answer

Vertical analysis is a method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account. It analyzes the relative size of financial statement items for a single time period, not over different periods of time.

Vertical Analysis Evaluates Financial Statement Data Over Different Periods of Time