An example of vertical analysis is that the cost of goods sold for Year 2 is 129% of the amount from Year 1.

Question

Quizplus · Accepted Answer

Vertical analysis refers to the process of comparing each line item in a financial statement to a base item within the same financial statement, such as sales or total assets, usually expressed as a percentage. The example given is more aligned with horizontal analysis, which compares items over different periods.

An Example of Vertical Analysis Is That the Cost of Goods