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2 years ago

______ analysis identifies the relative contribution made by each financial statement line item.

Business

1 answer:

Dominik [7]2 years ago

3 0

<u>The vertical analysis</u> identifies the relative contribution made by each financial statement line item.

<h3><u>Vertical Analysis: What Is It?</u></h3>

Each line item is provided as a percentage of a base figure in the statement as part of a technique called vertical analysis for financial statement analysis. As a result, line items on an income statement and balance sheet can both be expressed as a percentage of gross sales, a percentage of total assets or liabilities, and a percentage of total assets or liabilities, respectively. Vertical analysis of a cash flow statement also displays each cash inflow or outflow as a percentage of total cash inflows.

Learn more about financial statements with the help of the given link:

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