In vertical analysis,each item is expressed as a percentage of:
A) Total assets on the balance sheet.
B) Total cash on the balance sheet.
C) Total current assets on the balance sheet.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Vertical analysis expresses each item as a percentage of a certain total, which is usually total assets on the balance sheet. This allows for a comparison of the relative size of each item in relation to the overall financial picture of the company.

In Vertical Analysis,each Item Is Expressed as a Percentage Of