Vertical analysis shows the similar type of information as the technique used for horizontal analysis.

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. Horizontal analysis, on the other hand, compares data horizontally over time by analyzing the growth or decline in financial statement items across different periods.

Vertical Analysis Shows the Similar Type of Information as the Technique