In vertical analysis,it is customary to express each item on the balance sheet as a percentage of either total assets or total liabilities and stockholders' equity.

Question

Quizplus · Accepted Answer

In vertical analysis, each item on the balance sheet is expressed as a percentage of either total assets or total liabilities and stockholders' equity. This allows for easy comparison of the relative size and importance of each item in relation to the overall financial picture of the company.

In Vertical Analysis,it Is Customary to Express Each Item on the Balance