Vertical analysis is a technique which expresses each item within a financial statement

A) in dollars and cents.
B) in terms of a percentage of the item in the previous year.
C) in terms of a percent of a base amount.
D) starting with the highest value down to the lowest value.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure, facilitating comparison across different periods.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, which includes the balance sheet, income statement, and statement of cash flows.

Base Amount

The initial value or standard measure that is used as a reference point for calculations, comparisons, or adjustments.