In Performing a Vertical Analysis, the Base for Sales Revenues

question 189

Multiple Choice

In performing a vertical analysis, the base for sales revenues on the income statement is

• A) net sales.
• B) sales revenue.
• C) net income.
• D) cost of goods available for sale.

---

Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Confidence Interval

An estimated range of values which is likely to include an unknown population parameter, calculated from a given set of sample data.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies at a certain confidence level.

Probability

The extent to which an event is likely to occur, measured by the ratio of the favorable cases to the whole number of cases possible.