Final answer:
Vertical analysis involves expressing individual financial statement items as a percentage of a base figure and does not compare proportionate changes over multiple periods, so the statement is false.
Step-by-step explanation:
The student's question is about vertical analysis of financial statements, which is not accurately described in the provided statement. Vertical analysis is a method of financial statement analysis in which each entry for each category in the balance sheet or income statement is represented as a proportion of the total account. This technique displays items as a percentage of a single base figure, such as revenue on the income statement or total assets on the balance sheet, which makes it easier to compare financial statements of different-sized companies or of the same company over different periods.
Therefore, the correct answer to the question is false. Vertical analysis does not involve showing proportionate changes over multiple periods, but rather shows the relative size of financial statement items for a single period only.