A company has current assets of $600, total non-current assets of $1,200, current liabilities of $445, long-term borrowings of $800, and equity of $555. How are total assets shown when using a vertical analysis of the statement of financial position?
A) 10%
B) 100%
C) $600
D) $1,200

Question

Quizplus · Accepted Answer

In a vertical analysis of the statement of financial position (balance sheet), total assets are always represented as 100% because each line item on the balance sheet is expressed as a percentage of the total assets to show the relative size of each category.

A Company Has Current Assets of $600, Total Non-Current Assets