In Vertical Analysis

question 22

Multiple Choice

In vertical analysis:

• A)a base amount is optional.
• B)a base amount is required.
• C)line items from balance sheets are examined only.
• D)line items from income statements are examined only.

---

Definitions:

Quarterly Premiums

Payments made every three months for insurance policies or other agreements requiring regular fees.

Annual Premium

The amount of money that must be paid once a year to maintain an insurance policy or similar financial product.

Endowment Policy

An insurance policy that pays a specified sum to the policyholder upon a certain date, or to the beneficiaries upon the policyholder's death.

Straight-life Policy

A type of life insurance policy that provides coverage for the policyholder's entire lifetime, with fixed premiums and no expiration.