BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Vertical analysis is done to review and analysis the financial statements for a year only and therefore it is also called static analysis.

Detailed explanation-2: -Static Analysis is the automated analysis of source code without executing the application. When the analysis is performed during program execution then it is known as Dynamic Analysis. Static Analysis is often used to detect: Security vulnerabilities.

Detailed explanation-3: -Common size statements is also known as ‘Vertical analysis’.

Detailed explanation-4: -Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement.

Detailed explanation-5: -In accounting, a vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top-line sales number as 100%, and every other account will show as a percentage of the total sales number.