The Vertical Analysis Statement of Bateman,Inc

question 94

Multiple Choice

The vertical analysis statement of Bateman,Inc.is as shown below:

The figure 47.0% shown for gross profit in 2017 signifies that the gross profit is ________.

• A)equal to 47.0% of net income
• B)increased by 47.0% over the previous year
• C)47.0% of net sales revenue
• D)47.0% of cost of goods sold

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Definitions:

Inefficient Market Theory

The theory that asserts markets are not always perfectly efficient, meaning not all available information is always fully reflected in asset prices.

Technical Analysis

A trading approach that evaluates investments and identifies trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.

Stock Prices

The cost of purchasing a share in the ownership of a public company, reflecting its valuation and investor demand.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.