In vertical analysis, line items on the balance sheet are generally expressed as a percentage of
A) total liabilities.
B) net income.
C) total assets.
D) cost of goods sold.

Question

Quizplus · Accepted Answer

Vertical analysis expresses each line item on the balance sheet as a percentage of total assets. This helps to assess the relative importance of each asset, liability, and equity item in relation to the total size of the balance sheet.

In Vertical Analysis, Line Items on the Balance Sheet Are