Which of the Following Is the Definition of Vertical Analysis

question 62

Multiple Choice

Which of the following is the definition of vertical analysis?

• A) Vertical analysis is the practice of comparing a company with other companies that are leaders.
• B) Vertical analysis is the analysis in which percentages are computed by selecting a base year as 100% and expressing amounts for following years as a percentage of the base amount.
• C) Vertical analysis is the study of percentage changes in comparative financial statements.
• D) Vertical analysis is the analysis of a financial statement that reveals the relationship of each statement item to a specified base, which is the 100% figure.

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