单选题 Which of the following statements best describes vertical common-size analysis and horizontal common-size analysis?
Statement 1 : Each line item is expressed as a percentage of its base-year amount.
Statement 2: Each line item of the income statement is expressed as a percentage of revenue and each line item of the balance sheet is expressed as a percentage of ending total assets.
Statement 3: Each line item is expressed as a percentage of the prior year" s amount.
Vertical analysis Horizontal analysis
①A. Statement 1 Statement 2
②B. Statement 2 Statement 3
③C. Statement 2 Statement 1

A、 ①
B、 ②
C、 ③

【正确答案】 C

【答案解析】Horizontal common-size analysis involves expressing each line item as a percentage of the base- year figure. Vertical common-size analysis involves expressing each line item of the income statement as a percentage of revenue and each line item of the balance sheet as a percentage of ending total assets.