Question

When each asset is analyzed as a percent of total assets for a single period, this is known as A. ratio analysis. B. horizontal analysis. C. vertical analysis. D. comparative analysis.

Answer 1

The correct answer would be:

C) Vertical Analysis.

Answer 2

The correct answer would be C, Vertical Analysis.

Step-by-step explanation:

There are many types of analysis that are used to analyze the different financial statements of the company. Ratio analysis, Horizontal analysis, Vertical analysis, Comparative Analysis. etc. These analysis are used to analyze the data given in the balance sheet or income statement or cash flow statement of the company. In vertical analysis, the financial statements are analyzed by listing down each item on the sheet as the percentage of the base figure. As in this question, when assets are analyzes as a percent of total assets for a single period, the Vertical Analysis is being done.