In a vertical analysis of the balance sheet, the 100% amount is
A) Current assets
B) Working capital
C) Total assets
D) Total stockholders' equity

Question

Quizplus · Accepted Answer

In a vertical analysis of the balance sheet, the 100% amount represents the total assets. This is because a vertical analysis expresses each item on the balance sheet as a percentage of the total assets. Therefore, the sum of all the percentages must equal 100%. Current assets, working capital, and total stockholders' equity are all important components of the balance sheet, but they do not represent the full picture of the company's assets.

In a Vertical Analysis of the Balance Sheet, the 100