Practicing Success
What is the other name for the vertical analysis of financial statements? |
Dynamic Analysis Structural Analysis Static Analysis None of these |
Static Analysis |
Static analysis of financial statement covers a period of one year and the analysis is made on the basis of only one set of financial statements. Static analysis is also called vertical analysis. Static analysis of financial statement fails to incorporate the periodic changes, so it may not be very conductive to a proper understanding of the financial position of the firm. |