In performing a vertical analysis, what would property, plant, and equipment be expressed as a percentage of?
A)Total current assets
B)Total assets
C)Total liabilities
D)Sales revenue

Question

Quizplus · Accepted Answer

Property, plant, and equipment (PPE) is a non-current asset and, as such, it would be expressed as a percentage of total assets. Vertical analysis is a technique used to express each line item on a financial statement as a percentage of a common base to facilitate comparison. In the case of PPE, it would be expressed as a percentage of total assets to assess its relative importance to the organization's total asset base.

In Performing a Vertical Analysis, What Would Property, Plant, and Equipment