Vertical Analysis of a Balance Sheet Is Obtained by Using

question 58

True/False

Vertical analysis of a balance sheet is obtained by using Total Liabilities as a constant and dividing every figure on the balance sheet by Total Liabilities.

---

Definitions:

Risk Averse

Characteristic of individuals or entities that prefer to avoid risks and opt for safer options when making decisions.

Loss Averse

A cognitive bias that describes why for individuals the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

Benefits

The positive effects or advantages derived from a particular action, decision, or situation.

Status Quo

The existing state of affairs or the current condition, typically used in the context of social, political, or economic issues.