In Vertical Analysis

question 56

Multiple Choice

In vertical analysis

• A) a base amount is required.
• B) a base amount is optional.
• C) the same base is used across all financial statements analyzed.
• D) the results of the horizontal analysis are necessary inputs for performing the analysis.

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Definitions:

Limited Liability

This refers to a business structure where the owners' personal assets are protected from company debts and liabilities.

Sole Proprietorship

A company that is both owned and run by one person, with no separate legal identity between the proprietor and the business itself.

Separate Legal Entity

A business structure that is legally considered an independent entity separate from its owners, such as a corporation or LLP.

Limited Partnership

A partnership with general and limited partners.