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A Vertical Analysis of an Income Statement Automatically Provides the Return

question 113

True/False

A vertical analysis of an income statement automatically provides the return on sales ratio and the gross profit ratio.


Definitions:

Ratio Data

A type of quantitative data that not only measures the magnitude but also allows for the comparison of differences and the calculation of ratios, having an absolute zero point.

Categorical Data

Data that can be categorized into groups or categories that are mutually exclusive, without any natural ordering.

Obtaining

The act of acquiring or getting something through effort or request.

VLOOKUP

A function in spreadsheet programs that searches for a value in the first column of a table and returns a value in the same row from a specified column.

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