Question

Vertical analysis can best be described as a technique for analyzing the percentage change in individual financial statement line items from one accounting period to the next.

a. True
b. False

Answer 1

False

Step-by-step explanation:

Vertical analysis can be regarded as accounting tool which gives room for

proportional analysis of some documents. This document is usually

financial statements.In carrying out vertical analysis, all the item line that is on the financial statement is been recorded as percentage of another item. Instance of this is an income statement.