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    Question

    ABC Ltd. wants to conduct a vertical analysis of its

    income statement. To standardise its financial data, each line item should be presented as a proportion of:
    A the company’s net profit Correct Answer Incorrect Answer
    B the company’s total equity Correct Answer Incorrect Answer
    C the company’s total liabilities Correct Answer Incorrect Answer
    D the company’s total sales revenue Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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