Busıness Fınance I Deneme Sınavı Sorusu #830097

Which of the following shows the items in the financial statements are expressed as a percentage of total assets or sales?


Current ratio analysis

Vertical analysis

Horizontal analysis

Acid-test analysis

Debt-to-equity analysis


Yanıt Açıklaması:

In vertical (or common size analysis), the items in the financial statements are expressed as a percentage of total assets or sales. The main advantage of vertical analysis is that such an analysis is not much affected by price fluctuations and that it lets industry-wide comparisons.

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