Vertical analysis of a balance sheet is obtained by using Total Liabilities as a constant and dividing every figure on the balance sheet by Total Liabilities.

Question

Quizplus · Accepted Answer

Vertical analysis of a balance sheet is typically obtained by using Total Assets as a base figure and dividing each individual line item by Total Assets to get a percentage of each item relative to total assets, not Total Liabilities.

Vertical Analysis of a Balance Sheet Is Obtained by Using