In the Vertical Analysis of a Balance Sheet, the Base

question 60

True/False

In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.

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Definitions:

Accounts Receivable

Accounts receivable is a balance sheet item representing money owed to a business for goods or services delivered but not yet paid for by customers.

Indirect Statement

A financial statement method typically used in cash flow statements to adjust net income for changes in non-cash accounts.

Operating Activities Section

A part of the cash flow statement that shows the cash inflows and outflows resulting from the company's primary business activities.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and signifies a claim on part of the corporation's assets and earnings.