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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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