Vertical Analysis of a Balance Sheet Usually

question 5

Multiple Choice

Vertical analysis of a balance sheet usually:

• A) calculates each balance sheet item as a percentage of sales.
• B) calculates each balance sheet item as a percentage of total assets (funds).
• C) calculates each balance sheet item as a percentage of the bank balance.
• D) calculates each balance sheet item as a percentage of share capital.

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Definitions:

Activity Level

The volume of production or the rate of operations in a business activity.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more precise cost control.

Food And Supplies

These are consumable items bought and used in the operations of businesses, particularly in the restaurant and hospitality industries.

Tenant-Days

A measure used in property management representing the sum total of days each tenant occupies a space over a certain period.