Q11: An analysis that reports each dollar amount in a financial statemnet as a percentage of another amount is:a. vertical analysisb. horizontal analysisc. percentage analysisd. financial statement analysis

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Business

Isabella Heath

26 July, 10:04

Q11: An analysis that reports each dollar amount in a financial statemnet as a percentage of another amount is:a. vertical analysisb. horizontal analysisc. percentage analysisd. financial statement analysis

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Karter Owen · Answer 1

vertical analysis

Explanation:

On the vertical analysis, each value for the financial statment is represent based on another.

For the balance sheet, each account is represent as a percent of total assets, which is the greater value. All the assets, liabilities and equity figures are based on a percent of total assets:

account / total assets

For the income statement, each value is represent based on revenues, including the net income or loss.

The horizontal analysis measure the same account over different periods taking the first year of the series as base.