The type of analysis that shows the percentage that each item in a financial statement is of some significant total such as total assets or sales is called:

The correct answer is: Vertical Analysis.

Explanation:

In Vertical Analysis each line item is presented as a percentage of gross sales. On the Balance Sheet, each line item in the Assets section is presented as a percentage of total assets. In the Liability and Equity section, each line item is presented as a percentage of total liabilities and equity which, based on the accounting equation, is equal to Total Assets. Vertical Analysis is mostly used on the Income Statement.

answernet income for 2017 will be greater if the inventory quantity declines;