Vertical analysis is an excellent financial tool to determine the growth rate of a business for different accounts shown on a company's statement of income.

Question

Quizplus · Accepted Answer

Vertical analysis is a method used to show each item on a financial statement as a percentage of a base figure within the same statement, which helps in comparing and analyzing the relative size of different items, but it does not directly determine the growth rate of a business.

Vertical Analysis Is an Excellent Financial Tool to Determine the Growth