A Vertical Analysis Is Primarily Concerned With

question 21

Multiple Choice

A vertical analysis is primarily concerned with:

• A)percentage changes in the balances shown in comparative financial statements.
• B)the change in key financial statement ratios over a specified period of time.
• C)individual financial statement items expressed as a percentage of a base which represents 100%).
• D)the dollar amount of the change in various financial statement amounts from year to year.

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Definitions:

Recognition

The identification of a thing or person from previous encounters or knowledge.

Repetition

The action of repeating something that has already been said or written, often used as a learning technique or to emphasize a point.

Semantic

Relating to meaning in language or logic, particularly the meaning of words, phrases, signs, and symbols.

Procedural

Procedural refers to the way in which something is done or the method by which a task is completed, often related to automatic processes or routines.