BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is presented horizontally.
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It is presented vertically.
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It follows the format of the accounting equation.
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It lists all Assets first, followed by Liabilities, then Equity.
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Detailed explanation-1: -What is the distinct feature of the report form of Statement of Financial Position? It is presented horizontally.
Detailed explanation-2: -The report form balance sheet is presented in a vertical orientation, and is essentially one column that spans the entire width of a page.
Detailed explanation-3: -Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement.
Detailed explanation-4: -Whereas vertical analysis analyzes a particular financial statement using only one base financial statement of the reporting period, horizontal analysis compares a specific financial statement with other periods or the cross-sectional analysis of a company against another company.