For vertical analysis purposes, the base item on the Balance Sheet is:
A)total assets.
B)total equity.
C)total liabilities.
D)net equity.

Question

Quizplus · Accepted Answer

The base item for vertical analysis on a balance sheet is typically the total assets. This allows for analyzing the relative percentages of each type of asset against the total assets. It is also common to use total liabilities and/or total equity as the base item for vertical analysis, but total assets is the most common.

For Vertical Analysis Purposes, the Base Item on the Balance