The type of financial analysis that expresses balance sheet accounts as percentages of total assets is known as:
A)horizontal analysis.
B)vertical analysis.
C)net worth analysis.
D)expenditure analysis.

Question

Quizplus · Accepted Answer

Vertical analysis expresses balance sheet accounts as percentages of total assets, allowing for meaningful comparisons between companies of different sizes. Horizontal analysis compares financial statements from multiple periods to identify trends and changes over time. Net worth analysis focuses specifically on a company's equity or net worth. Expenditure analysis evaluates spending patterns to help identify areas of financial efficiency or waste.

The Type of Financial Analysis That Expresses Balance Sheet Accounts