Question

Common size analysis is also known as _____ analysis.

Options

• Impact of horizontal line

• Impact of vertical line

• Both of these

• None of these

Answer 1

Common size analysis is also known as the impact of vertical line analysis.

Explanation:

Common-size statements are useful for intra-firm year-to-year comparisons as well as inter-firm year-to-year or multiple-year comparisons. This type of study is also known as vertical analysis.