1. Comparable financial statements are designed to compare the financial statements of two or more corporations. 
 

2. In horizontal analysis, the current year is the base year. 
 

3. On a common-sized income statement, all items are stated as a percent of total assets or equities at year-end. 
 

4. The percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred to as horizontal analysis. 
 

5. A 15% change in sales will result in a 15% change in net income. 
 

6. A financial statement showing each item on the statement as a percentage of one key item on the statement is called common-sized financial statements. 
 

7. The relationship of each asset item as a percent of total assets is an example of vertical analysis. 
 

8. Vertical analysis refers to comparing the financial statements of a single company for several years. 
 

9. In a common-sized income statement, each item is expressed as a percentage of net income. 
 

10. In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.