In Vertical Analysis,the Base Used for Comparison on the Balance

question 30

Multiple Choice

In vertical analysis,the base used for comparison on the balance sheet is

• A)total stockholders' equity.
• B)total liabilities.
• C)total liabilities plus total stockholders' equity or total assets.
• D)none of the above

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Definitions:

Voucher

A special form for recording relevant data about a liability and the details of its payment.

Cash Payment

is the act of settling a transaction or discharging a debt by using physical currency or through a digital medium representing immediate value.

Internal Control Objectives

The goals aimed at ensuring the reliability of financial reporting, compliance with laws and regulations, and effectiveness of operations.

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.