All of the Following Statements About Vertical Analysis Are True

question 88

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 statement of income are expressed as a percentage of 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.

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Definitions:

Unstable External

Situations or factors outside an individual's control that are unpredictable and can affect their life or decisions.

External

Situated outside, coming from outside, or relating to an outer part or aspect of something.

Representativeness Heuristic

A mental shortcut where the likelihood of an object belonging to a category is judged based on how typical the object seems of that category.

Ease of Retrieval Effect

A cognitive bias where people judge an event to be more likely or frequent if examples of it come to mind easily.