The claim is a. accurate. Vertical analysis is frequently used to compare different organizations. This instrument is used to assess financial statements.
Vertical analysis compares financial statements by showing each line item as a percent of another budget item on the statement. "Horizontal analysis" is frequently used in conjunction with this kind of study.
What quality does vertical analysis have? It determines the proportions of individual items to the overall. It is a statement of the logical connections between things within a time frame. It computes the dollar variations in the statement items. It computes adjustments to components or totals of comparative statements.
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