BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a
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b
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c
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a and b
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Detailed explanation-1: -Vertical analysis allows the comparison between financial ratios over a certain time period. this statement is not correct because the horizontal analysis is the one responsible for ratio analysis and not the vertical analysis.
Detailed explanation-2: -Vertical Analysis refers to the income statement analysis where all the line items present in the company’s income statement are listed as a percentage of the sales within such a statement. It thus helps analyze the company’s performance by highlighting whether it is showing an upward or downward trend.
Detailed explanation-3: -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-4: -What is vertical analysis? Vertical analysis is a method of analyzing financial statements that list each line item as a percentage of a base figure within the statement. The first line of the statement always shows the base figure at 100%, with each following line item representing a percentage of the whole.