Respuesta :
In vertical analysis, each item is expressed as a percentage of total assets on the balance sheet. Hence, option (b) will be regarded as suitable.
Give a brief account on balance sheet.
The balance sheet, one of the three basic financial statements, is essential to accounting and financial modeling. The balance sheet lists all of the company's assets along with their sources of funding, including debt and stock. A statement of financial status or a statement of net worth may also be used to describe it. Assets = Liabilities + Equity is the basic formula used to create a balance sheet.
Consequently, there are two sides to the balance sheet (or sections). All of a company's assets are listed on the balance sheet's left side. Liabilities and shareholder equity for the company are shown on the balance sheet's right side. Current Assets and Liabilities and Non-current (Long-Term) Assets and Liabilities are the two categories into which the assets and liabilities are divided. Stock, cash, and trades payables are arranged in the current section before less liquid (or non-current) items like plant, property, and equipment (PP&E), and long-term debt.
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