In Vertical Analysis, the Base Amount for Salaries and Wages

question 124

Multiple Choice

In vertical analysis, the base amount for salaries and wages expense is generally

• A) net sales.
• B) salary & wages expense in a previous year.
• C) gross profit.
• D) net income.

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Definitions:

Withdraw

The act of removing funds from an account, or taking back an offer or statement.

Investment

The allocation of resources with the expectation of generating an income or profit.

Present Value

The value today of a sum of money or sequence of cash flows expected in the future, calculated using a designated interest rate.

Contingent Liabilities

Possible obligations that might arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events.