In performing a vertical analysis, the base for prepaid expenses is
A) total current assets.
B) total assets.
C) total equity and liabilities.
D) prepaid expenses.

Question

Quizplus · Accepted Answer

In vertical analysis, each item on a financial statement is expressed as a percentage of a base amount. For prepaid expenses, the base is typically total assets, as it is a component of the asset section on the balance sheet.

In Performing a Vertical Analysis, the Base for Prepaid Expenses