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In which analytical method are no dollar amounts shown?

a. Common-sized statement
b. Horizontal analysis
c. Vertical analysis
d. None of these choices are correct.

1 Answer

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Final answer:

In vertical analysis, no dollar amounts are shown; instead, financial information is expressed as percentages of a base value. This allows for easy comparison over time or between companies.

Step-by-step explanation:

In the analytical method known as vertical analysis, no dollar amounts are shown. Instead, a common-sized statement is used to express financial information as percentages of a base value, such as total assets or net sales. This method allows for easy comparison of different financial statements over time or between companies, without being influenced by the specific dollar amounts involved.

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