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The type of analysis that shows the percentage that each item in a financial statement is of some significant total such as total assets or sales is called:______

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Answer:

The correct answer is: Vertical Analysis.

Explanation:

In Vertical Analysis each line item is presented as a percentage of gross sales. On the Balance Sheet, each line item in the Assets section is presented as a percentage of total assets. In the Liability and Equity section, each line item is presented as a percentage of total liabilities and equity which, based on the accounting equation, is equal to Total Assets. Vertical Analysis is mostly used on the Income Statement.