Ask Experts Questions for FREE Help !
Ask
    oh.corona_345's Avatar
    oh.corona_345 Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Oct 10, 2010, 09:41 PM
    All of the following statements regarding vertical analysis are true except:
    A) In a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets.
    B) In a vertical analysis of an income statement, each item is stated as a percent of total expenses.
    C) Vertical analysis may be prepared for several periods to analyze changes in relationships over time.
    D) Major differences between a company's vertical analysis and industry averages should be investigated.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Oct 11, 2010, 06:58 AM

    Vertical analysis is used to compare income statement accounts to net income as a percentage of net income.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #3

    Oct 11, 2010, 07:25 AM

    Pready: Vertical analysis of income statement is based on net sales and not net income
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Vertical Analysis [ 1 Answers ]

The cost of sales expense and the selling, advertising and general administration expenses of a company steadily increases over a five year period, what affect will this have on net earnings and why?

Financial Statements Analysis [ 1 Answers ]

I have been working on this problem for a couple of days now and I am hoping I have it correct. Any guidance or help would be greatly appreciated. Thanks! JACK FROST COMPANY Income Statements For the Years Ended December 31 2007 2006 Net...

Calculus: Which of the following statements are true? [ 1 Answers ]

Let f(x)=3 - |(x^2)-4| . Which of the following statements are true? A. the limit as x approaches 2 from the right does not exists B. f is differentiable at x = -2 C. f '(0) = 0 D. f '(1) = -2 E. f '(-1) = 2

Which one of the statements is true [ 3 Answers ]

-about stationary waves and why(my book doesn't help here) 1.particles between adjacent nodes all have the same amplitude 2. particles between adjacent nodes are out of phase with each other 3. particles immediately on either side of a node are moving in opposite directions 4.there is a...

View more questions Search