Question

What are the advantages of Vertical form of balance sheet? Give detailed explanation of Equity and Liabilities in Balance sheet?

Answer 1

Vertical balance sheets are very useful in making financial statements.

Explanation:

• Vertical balance sheets are very useful in financial statements.
• The main advantage of using a vertical analysis is that the balance sheets and income statements of companies can be compared with each other
• In the vertical analysis, the size of the balance sheet does not matter.
• The vertical analysis makes it easy to analyze the financial position and financial performance of a company.