Correct Answer:
C. A base figure such as total assets or sales in the same period
Vertical (common-size) analysis shows relative proportions within a single statement.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
In vertical analysis, each item in a financial statement is expressed as a percentage of:
Related MCQs
Using the Gordon growth model, next year's dividend is Rs. 6, the required return is 12% and growth is 4%. The share price is:
A.
Rs. 50
B.
Rs. 75
C.
Rs. 37.5
D.
Rs. 150
Correct answer is:
B. Rs. 75
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The Departmental Accounts Committee (DAC) meeting is held to:
A.
Prepare the national budget
B.
Discuss and settle audit paras between audit and the department's Principal Accounting Officer
C.
Select new auditors
D.
Approve foreign loans
Correct answer is:
B. Discuss and settle audit paras between audit and the department's Principal Accounting Officer
Do you agree with this answer?
An example of an indirect tax is:
A.
Income tax
B.
Wealth tax
C.
Sales tax
D.
Property tax on owner
Correct answer is:
C. Sales tax
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Which of the following is NOT one of Adam Smith's canons of taxation?
A.
Equity
B.
Certainty
C.
Elasticity
D.
Economy
Correct answer is:
C. Elasticity
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According to IPSAS 23, taxes and transfers are classified as:
A.
Exchange transactions
B.
Non-exchange transactions
C.
Capital transactions
D.
Contingent assets
Correct answer is:
B. Non-exchange transactions
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Zero-based budgeting (ZBB) requires that:
A.
Last year's budget be increased by inflation
B.
Every expenditure be justified from zero in each budget cycle
C.
Budgets be zero in the first year
D.
No deficit be allowed
Correct answer is:
B. Every expenditure be justified from zero in each budget cycle
Do you agree with this answer?
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