The following is an example of: $$\begin{array} { | l | r | r | }
\hline & \text { Amount } & \% \
\hline \text { Cash } & \$ 300,000 & 6.0 \
\hline \text { Accounts receivable } & 500,000 & 10.0 \
\hline \text { Inventory } & 800,000 & 16.0 \
\hline \text { Long-term assets } & \underline {3,400,000} & \underline { 68.0 } \
\hline \text { Total assets } & \$ 5,000,000 & 100.0 \
\hline
\end{array}$$
A)Vertical analysis.
B)Horizontal analysis.
C)Diagonal analysis.

Question

The following is an example of: $$\begin{array} { | l | r | r | } 
\hline & \text { Amount } & \% \
\hline \text { Cash } & \$ 300,000 & 6.0 \
\hline \text { Accounts receivable } & 500,000 & 10.0 \
\hline \text { Inventory } & 800,000 & 16.0 \
\hline \text { Long-term assets } & \underline {3,400,000} & \underline { 68.0 } \
\hline \text { Total assets } & \$ 5,000,000 & 100.0 \
\hline
\end{array}$$
A)Vertical analysis.
B)Horizontal analysis.
C)Diagonal analysis.

Quizplus · Accepted Answer

Vertical analysis is a method where each entry in a financial statement is listed as a percentage of another item. In this example, each asset's amount is presented as a percentage of total assets, which is characteristic of vertical analysis.

The Following Is an Example Of A)Vertical Analysis