A primary purpose of vertical analysis is to observe trends over a 3-year period.

Name: A primary purpose of vertical analysis is to observe trends over a 3-year period.
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Question

Quizplus · Accepted Answer

The primary purpose of vertical analysis is to analyze the relationship between different components of financial statements within a single period, such as a year or a quarter. It is not specifically focused on observing trends over multiple years.

A Primary Purpose of Vertical Analysis Is to Observe Trends