Vertical Analysis Looks At

question 18

Multiple Choice

Vertical analysis looks at:

• 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) the dollar amount of the change in various financial statement amounts from year to year
• D) individual financial statement items expressed as a percentage of a base (which represents 100%)

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from consuming an additional unit of a good or service.

Scented Candles

Candles infused with fragrance oils or natural aromatic extracts intended to emit a pleasant aroma when lit.

Consumer Surplus

The contrast between the full amount consumers are willing to invest in a product or service and the actual payment they make.

Action Figures

Small figures representing a character from a movie, comic book, video game, or television program, designed for play or collection.