Question

6. Using a base year and calculating each future amount as a percentage of the base year amount is called a

•vertical analysis.
•common size.
•horizontal analysis
• ratio analysis.

Answer 1

I believe it is common size

Answer 2

horizontal analysis

Explanation:

vertical analysis uses line items in the financial statements as a percentage of the base year which is the same as common size

ratio analysis compares line items between two companies against a base year.