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Which of the following is representative of vertical analysis?

A. Vertical analysis in the income statement causes all accounts to be related as a percentage of  net income.

B. Percentages used in vertical analysis make identifying trends difficult. 

C. Vertical analysis in the balance sheet causes all accounts to be related as a percentage of total assets.

D. Percentages can be used in the balance sheet without being associated with the numbers they represent.

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Question ajoutée par Hany Sabry , Finance Manager , Coffee Adress
Date de publication: 2015/01/19

C. Vertical analysis in the balance sheet causes all accounts to be related as a percentage of total assets.

Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

c

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

C>>>>>>>>> Vertical analysis in the balance sheet causes all accounts to be related as a percentage of total assets.

Muhammad Inam
par Muhammad Inam , SENIOR ACCOUNTANT/CARGO & SHIPPING CONTROLLER AT TOP LINE CARGO L.L.C DUBAI , IND. AREA 2 AL QUSAIS DUBAI

All assets  are shown as a percentage of total assets and current liabilities, long term debts and equities are shown as a percentage of the total liabilities and stockholders’ equity.

Hence the option (C) represent upto somewhat extent.

Khurram Shaukat Memon
par Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Option (c) is correct representative of vertical analysis.

Bilal Khan
par Bilal Khan , Senior Tax Accountant , Finvesco Limited

Vertical analysis is an approach commonly used for comparative analysis between two fiscal years by reducing numbers in financial statements to simple percentage for each year. 

 

The Correct answer would be A & C. 

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