When doing a vertical analysis, which of the following is a typical comparison item set at 100%?
A) Total liabilities
B) Total stockholders' equity
C) Total cash
D) Total assets

Question

Quizplus · Accepted Answer

In a vertical analysis of a balance sheet, total assets are typically set at 100%. This allows for the comparison of each individual asset, liability, and equity item as a percentage of total assets, facilitating an understanding of the relative size and importance of each item in the context of the overall financial position of the company.

When Doing a Vertical Analysis, Which of the Following Is