All of the Following Statements About Vertical Analysis Are True

question 140

Multiple Choice

All of the following statements about vertical analysis are true except

• A)vertical analysis is also called common size analysis.
• B)amounts on the income statement are expressed as a percentage of net sales.
• C)vertical analysis shows the relative size of each item in the statement of financial position.
• D)vertical analysis is also called trend analysis.

---

Definitions:

Pure Competition

Pure competition is a market structure characterized by many sellers and buyers, homogenous products, and free entry and exit from the market, leading to price determination by supply and demand forces.

Socialism

Economic system characterized by government ownership and operation of major industries, such as communications.

Economic Recession

An economic recession is a significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Regulated Monopolies

Market situations in which local, state, or federal government grants exclusive rights in a certain market to a single firm.