Directions: Choose the Best Answer Based on the Information You

question 20

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter 12. ​ A personal commentary is ________________.

• A)written by an editor.
• B)written by someone other than an editor.
• C)is an opinion piece.
• D)B and C.

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Definitions:

Vertical Analysis

A method in financial analysis where each entry in a set of financial statements is listed as a percentage of another item, typically used for income statement and balance sheet analysis to show relative proportions.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Common-sized Balance Sheet

A balance sheet in which each line item is expressed as a percentage of total assets, facilitating comparison with other companies regardless of size.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement, allowing for easy comparison and analysis of different-sized companies.