The Following Is an Example Of A)Vertical Analysis

question 61

Multiple Choice

The following is an example of:
$$\begin{array} { | l r r | } \hline & \text { Amount } & \% \\\text { Cash } & \$ 300,000 & 6.0 \\\text { Accounts receivable } & 500,000 & \mathbf { 1 0 . 0 } \\\text { Inventory } & 800,000 & \mathbf { 1 6 . 0 } \\\text { Long-term assets } & 3,400,000 & \mathbf { 6 8 . 0 } \\\hline\text { Total assets } & \$ 5,000,000 & \mathbf { 1 0 0 . 0 } \\\hline\end{array}$$

• A)Vertical analysis.
• B)Horizontal analysis.
• C)Diagonal analysis.
• D)Both vertical and horizontal analysis.

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Definitions:

Routine Request

A standard or common query or application, often part of regular operations or transactions.

Clear Statement

A statement expressed in an unambiguous and straightforward manner, leaving no room for confusion or misunderstanding.

Buffer

A temporary storage area in computing where data is held while it is waiting to be transferred or processed, helping to manage differences in operation speed.

Direct Approach

A straightforward method of communication or problem-solving that involves dealing with issues in a clear and explicit manner.