Define Vertical Percentage Analysis

question 59

Essay

Define vertical percentage analysis.

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Definitions:

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and profits or losses.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period of time to identify trends and growth patterns.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased in percentage terms from the original figure.