Final answer:
Vertical analysis is true to be a useful detection technique due to its utilization of percentages, making it simpler to comprehend financial data. Analytical methods are typically more accurate than graphical techniques, as they avoid the potential distortions introduced by scaling in visual representations.
Step-by-step explanation:
Vertical analysis is indeed a useful detection technique because it expresses each item in a financial statement as a percentage of a base figure, making it easier to compare financial statements of different-sized companies and to analyze trends within a company over different periods. Therefore, the statement that vertical analysis is useful because percentages are easily understood is True. By converting numbers to percentages, it simplifies the comprehension of the financial status and performance of a company.
When comparing analytical techniques to graphical techniques, analytical methods can be more accurate because they are not subject to the distortions that can arise from the limits of graphical scaling. For example, changing the scale on the vertical axis can make data fluctuations appear smaller or larger, depending on the scale used, which may mislead the interpretation of the data. Analytical methods provide precise calculations that aren't influenced by such visual distortions.