Which of the Following Is an Example of Vertical Analysis

question 103

Multiple Choice

Which of the following is an example of vertical analysis?

• A)Comparing gross profit across companies.
• B)Comparing income statement items as a percentage of sales.
• C)Comparing debt with industry averages.
• D)Comparing the change in sales over time.

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Definitions:

Biomass

A quantitative estimate of the total mass, or amount, of living material in a particular ecosystem.

Gross Primary Productivity

The total rate at which photosynthetic organisms in an ecosystem convert carbon dioxide into organic carbon compounds.

Net Primary Productivity

The rate at which plants and other photosynthetic organisms produce organic compounds in an ecosystem minus the rate at which they use some of these compounds through respiration.

Plant Respiration

The process by which plants take in oxygen and release carbon dioxide, involved in energy production at the cellular level.