In performing a vertical analysis of a balance sheet, which of the following is generally used as the base amount?
A)Total liabilities
B)Net assets
C)Total assets
D)Total stockholder's equity

Question

Quizplus · Accepted Answer

Total assets is generally used as the base amount in performing a vertical analysis of a balance sheet. This is because total assets represent the total resources of the company, and all other items on the balance sheet are derived from or financed by these assets.

In Performing a Vertical Analysis of a Balance Sheet, Which