1. Comparing each item on a financial statement with a total amount from the same statement is referred to as

1. horizontal analysis.
2. vertical analysis.
3. revenue recognition.
4. None of these choices are correct.

2. In a vertical analysis, which of the following accounts is most likely to represent 100 percent?

1. Fees Earned
2. Supplies Expense
3. Rent Expense
4. Wages Expense