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Q. Explain Vertical analysis?
Vertical analysis demonstrates the percentage that each item in a financial statement is of some significant total such as total assets or sales. For example in the Hewlett-Packard data we can see that cash and cash equivalents were 15.3 percent of total assets as of 1999 October 31 and had declined to 10.0 percent of total assets by 2000 October 31. Whole current assets (cash plus other amounts that will become cash or be used up within one year) increased from 61.3 percent of total assets to 68.3 percent during 2000. Long-term investments as well as other non-current assets accounted for 18.4 percent of total assets as of 2000 October 31.
Why to and by using in journal, trading a/c, p&l a/c and ledger?
Montana Company produces basketballs. It incurred the following costs during the year. Direct materials: $14,032 Direct Labor: $25,706 Fixed manufacturing overhead: $9,698
WHO PREPARES A TRADING ACCOUNT AND WHY?
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