Which of the Following Is Not True of Vertical Analysis

question 99

Multiple Choice

Which of the following is not true of vertical analysis?

• A)Each item on the balance sheet is expressed as a percentage of total liabilities.
• B)The percentages can be added and subtracted from top to bottom.
• C)Each item in the income statement is expressed as a percentage of net sales.
• D)Each item on the balance sheet is expressed as a percentage of total assets.

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Definitions:

Object Permanence

The realization that people and objects exist even when they cannot be seen.

Goal-Directed Behavior

Behavior in which several schemes are combined and coordinated to generate a single act to solve a problem.

Secondary Circular Reactions

A stage in Piaget's theory of cognitive development where infants (4-8 months) repeat pleasurable actions that are centered on their own body.

Primary Circular Reactions

Repetitive actions focused on the body that infants engage in for pleasure, part of Piaget’s stages of cognitive development.