Chapter 15, Problem 5RQ

To determine

Financial Statement Analysis

Financial information of a business are analyzed by the analysts, investors, creditors, auditors, and others parties to evaluate the financial status of the business by comparing its financial statements over the years, with the peer business, and with the industry as a whole.

To Define: The vertical analysis and identify the item used as the base for income statement, and the item used as the base for balance sheet.