The Ratio of the Dollar Amount of Each Individual Asset

question 77

True/False

The ratio of the dollar amount of each individual asset to the dollar amount of total assets is an example of vertical analysis.

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Definitions:

Net Income

The amount of profit left over after all expenses, taxes, and costs have been subtracted from total revenue.

Sales

The total revenue a company generates from selling goods or services before any expenses are subtracted.

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage, indicating the portion of each dollar of revenue that results in net income.