When analyzing income statement accounts, the base is usually revenue .
Explanation:
Vertical analysis is a financial accounting evaluation tool by which each element of the row is listed in the document as a percentage of the basis statistic.
Therefore, income reports are shown as the ratio of gross revenue and the balance sheet products can be shown as a percentage of total liabilities or debts and that each cash inflow or outflow as a proportion of total cash inflows is shown by a vertical analysis of a cash flow system.
Money is typically money that the company receives from normal business operations, primarily through the selling of products and services to clients. Â
The profits, tax income, charges paid, interest income, and interest income are forms of revenue accounts. Once activities are performed / billed, Tax accounts are paid and would therefore normally include credit balances.
