Question

Vertical analysis is a tool to evaluate individual financial statement items or a group of items in terms of a specific base amount. When analyzing income statement accounts, the base is usually a. revenueb.expensesc.net income

Answer 1

The correct answers are revenue; assets.

Step-by-step explanation:

Just as you can use the vertical analysis applied to the Balance Sheet, you can also analyze the Income Statement, for which exactly the same procedure as for the balance sheet is followed, and the reference value will be sales, since it is due Determine how much a certain concept represents (Sales Cost, Operating Expenses, Non-Operating Expenses, Taxes, Net Profit, etc.) with respect to the total sales.