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Chapter 17, Problem 5RQ
To determine

Vertical Analysis: It is also known as common size analysis measures each item in the financial statement as a percentage of the base value of that particular statement.

It measures the relative changes in the value of a particular item over a period. Any alarming shift in the trend triggers a need to analyze the reason behind the shift.

To Explain: The meaning of vertical analysis and the item to be used as base in case of income statement and balance sheet

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Chapter 17 Solutions

Horngren's Accounting - Acc122: Accounting Principles 1- Third Custom Edition For Borough Of Manhattan Community College

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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License