In performing a vertical analysis, the base for prepaid expenses is
A) total current assets.
B) total assets.
C) total liabilities and shareholders' equity.
D) prepaid expenses.

Question

Quizplus · Accepted Answer

In a vertical analysis, the base for prepaid expenses is total assets. This approach allows for the assessment of prepaid expenses in relation to the overall asset structure of the company, providing insights into its financial health and operational efficiency.

In Performing a Vertical Analysis, the Base for Prepaid Expenses