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    Question

    Vertical analysis of financial statements expresses each

    line item as a percentage of _______
    A Net profit and Paid-up Capital Correct Answer Incorrect Answer
    B Net Profit and Total assets Correct Answer Incorrect Answer
    C Total Revenue and Total Share Holders’ Funds Correct Answer Incorrect Answer
    D Total Revenue and Total Assets Correct Answer Incorrect Answer
    E Respective Previous year values Correct Answer Incorrect Answer

    Solution

    In vertical analysis, each item is shown as a percentage of a common base, such as total revenue (for P&L) or total assets/liabilities (for Balance Sheet), enabling comparison within the same period.

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