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Analysis of financial statement for single year is called as which type of analysis? |
Vertical analysis Dynamic Analysis Structural Analysis Functional Analysis |
Vertical analysis |
Vertical analysis, also known as common-size analysis, is a financial analysis technique used to assess the relative proportions of different items within a financial statement. It involves expressing each line item of a financial statement as a percentage of a common base amount. The purpose of vertical analysis is to identify the composition and significance of individual elements in relation to the total or the base amount. |