Vertical analysis expresses each item in a financial statement as a percentage of the same base amount.

Question

Quizplus · Accepted Answer

Vertical analysis is a technique used in financial analysis to compare different items of a financial statement by expressing them as a percentage of the same base amount. It helps to understand the percentage relationship between various items in the financial statement and evaluate changes over time.

Vertical Analysis Expresses Each Item in a Financial Statement as a Percentage