Which of the following statements best des

问题单项选择题

Which of the following statements best describes vertical common-size analysis and horizontal common-size analysis Statement 1 : Each line item is expressed as a percentage of its base-year amount. Statement 2: Each line item of the income statement is expressed as a percentage of revenue and each line item of the balance sheet is expressed as a percentage of ending total assets. Statement 3: Each line item is expressed as a percentage of the prior year’ s amount. Vertical analysis Horizontal analysis（）①A. Statement 1Statement 2 ②B. Statement 2 Statement 3 ③C. Statement 2 Statement 1

A. ①

B. ②

C. ③

答案

参考答案：C

解析：

Horizontal common-size analysis involves expressing each line item as a percentage of the base- year figure. Vertical common-size analysis involves expressing each line item of the income statement as a percentage of revenue and each line item of the balance sheet as a percentage of ending total assets.