All of the following statements regarding vertical analysis are true except:
a. Vertical analysis may be prepared for several periods to analyze changes in relationships over time.
b. In a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets.
c. In a vertical analysis of an income statement, each item is stated as a percent of total expenses.
d. Major differences between a company's vertical analysis and industry averages should be investigated.
Question 2
Which of the following liabilities normally would not be reported in governmental funds?
a. accrued salaries payable
b. bonds payable
c. vouchers payable
d. all of the above are commonly reported in governmental funds
e. none of the above are commonly reported in governmental funds
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