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

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Definitions:

Utility Bill

An invoice for services provided by utility companies, such as electricity, water, and gas.

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and investments, a component of a company's cash flow statement.

Indirect Method

A technique used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.