A Vertical Analysis Is Primarily Concerned With

question 18

Multiple Choice

A vertical analysis is primarily concerned with:

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

---

Definitions:

Rings Passing

A condition in an engine when the piston rings do not properly seal, allowing oil or fuel to pass into the combustion chamber.

Audible Air Leak

A situation where air is escaping from a pneumatic system, such as brakes or suspension, identified by a sound indicating a potential malfunction.

Out Of Service (OOS)

A status indicating that a device, vehicle, or system is not operational, either due to malfunction or maintenance requirements.