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When vertical analysis is performed: a. ratios are used to detect fraud b. changes in significant balance totals are examined c. financial statement balances are
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When vertical analysis is performed: a. ratios are used to detect fraud b. changes in significant balance totals are examined c. financial statement balances are

User Greeny
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Answer: Financial statement balances are converted to percentages.

Step-by-step explanation:

Vertical analysis is a method of financial statement analysis whereby each line item will have to be listed as a percentage of the base figure that is within the financial statement. In vertical analysis, the balances in a single period are being converted to percentages.

Vertical analysis helps in comparing the financial information of a small firm to that of a big firm

User Hyeseong
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