In performing a vertical analysis, the base for cash is:
A) total liabilities and stockholders' equity.
B) total assets.
C) total cash and cash equivalents.
D) total current assets.

Question

Quizplus · Accepted Answer

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

In Performing a Vertical Analysis, the Base for Cash Is