Vertical analysis is the application of ratio analysis to the many sets of financial statements.

Question

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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 does not involve the application of ratio analysis to many sets of financial statements but rather focuses on analyzing individual financial statements by looking at the relative size of each line item compared to a base figure.

Vertical Analysis Is the Application of Ratio Analysis to the Many