In vertical analysis, each item is expressed as a percentage of:
A. Sales on the income statement.
B. Net income on the income statement.
C. Total expenses on the income statement.
D. None of these answers is correct.
Answer: A
You might also like to view...
The following are examples of advertising goals, except:
A) building brand image B) defending against lawsuits C) to inform D) to persuade
Advertising "puffery" is a term for a(n)________
A) straightforward promotional message B) claim of superiority that cannot be proven or disproven C) emotional appeal to customers D) subliminal appeal to customers E) value-added promotion
Which of the following depicts the correct progression of a case through the federal court system? I. Supreme Court II. Circuit Court of Appeals (one of twelve) III. U.S. District Court
a. I, II, III b. II, I, III c. III, II, I d. I, III, II
A limitation of ratio analysis is that:
A. it is useful only for large, multidivisional firms. B. inflation, which distorts a firm's balance sheet, is considered when calculating ratios. C. seasonal factors, which distort a firm's balance sheet, are taken into account when calculating ratios. D. firms can employ window-dressing techniques to make their financial statements look better. E. only statistical procedures are considered while analyzing the net effects of a set of ratios.