Asked by TRINH NGUYEN PHUONG on May 17, 2024
Verified
If a company is comparing its financial condition or performance to a base amount,it is using vertical analysis.
Base Amount
A reference value or starting point used for financial calculations, such as determining percentages or comparisons.
- Comprehend diverse instruments and techniques for analyzing financial statements, encompassing both horizontal and vertical evaluations.
Verified Answer
FS
Fernando SalgadoMay 19, 2024
Final Answer :
True
Explanation :
Vertical analysis is a technique of comparing a company's financial condition or performance to a base amount, such as total assets or total revenue, to identify the relative proportion of each line item on the financial statement.
Learning Objectives
- Comprehend diverse instruments and techniques for analyzing financial statements, encompassing both horizontal and vertical evaluations.
Related questions
Intra-Company Analysis Is Based on Comparisons with Competitors
The Three Basic Tools of Analysis Are Horizontal Analysis Vertical ...
A Percentage Analysis of Increases and Decreases in Related Items ...
In a Vertical Analysis, the Base for Cost of Goods ...
The Following Information Was Taken from the Financial Statements of ...