When Performing Vertical Analysis of a Balance Sheet,the Base Amount

question 42

Multiple Choice

When performing vertical analysis of a balance sheet,the base amount is ________.

• A) total assets
• B) total cash and cash equivalents
• C) net income
• D) gross profit

---

Definitions:

Liability For Warranties

The responsibility of a company to cover costs of addressing defects or repairs under warranty for sold products.

Income After Bonus

The portion of a company's income that remains after paying out bonuses to employees. This figure helps assess the company's net profitability after distributing employee incentives.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income level, type of income, or jurisdiction.

Current Liabilities

Obligations or debts that a company must pay within a year, including accounts payable, short-term loans, and accrued expenses.