Company A shows revenue of $2,500 and company B shows revenue of $2,250. How is revenue shown on a vertical analysis of the statement of income?

Question

Quizplus · Accepted Answer

In a vertical analysis of the income statement, each item is typically expressed as a percentage of total revenue. Therefore, the revenue itself is always 100% of its own value, regardless of the actual dollar amount.

Company a Shows Revenue of $2,500 and Company B Shows