Vertical Analysis Looks At

question 46

Multiple Choice

Vertical analysis looks at:

• A) percentage changes in the balances shown in comparative financial statements
• B) individual financial statement items expressed as a percentage of a base (which represents 100%)
• C) the dollar amount of the change in various financial statement amounts from year to year
• D) the change in key financial statement ratios over a specified period of time

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Definitions:

Majority

The greater part or number; often used to denote the age at which a person gains full legal rights and responsibilities.

White

A racial classification often used to refer to people of European origin, but can also denote purity or absence of color in different contexts.

Marriage Squeeze

A demographic imbalance in which the number of potential brides does not approximately equal the number of potential grooms within a certain population.

Middle Years

The period of life typically between early adulthood and old age, often considered to be from about age 45 to 65, characterized by stability and reflection on life achievements.