Which of the following is typically used as the base in a vertical analysis of a balance sheet?
A) Total liabilities
B) Cash
C) Total assets
D) Gross sales

Question

Quizplus · Accepted Answer

Total assets are typically used as the base in a vertical analysis of a balance sheet because it provides a representation of all the resources, both tangible and intangible, owned or controlled by the company. By expressing each line item as a percentage of total assets, it helps to highlight the composition and relative significance of each asset in the company's financial position.

Which of the Following Is Typically Used as the Base