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Vertical analysis compares the components of the balance sheet with a base item.

O True O False

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2 votes

Answer:

True

Step-by-step explanation:

The vertical analysis is the financial statement involves taking a company information in comparison with the a base data. This analysis is also related to industry average analysis.

There is horizontal analysis which is based on comparing a company’s current year performance with previous year’s performance or more years. This is also called Trend analysis.

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