In performing vertical analysis, the base for prepaid expense is .

Total current assets

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Total assets

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Non-current assets

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Current liabilites

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Solution

The correct option is B Total assets
In performing vertical analysis i.e.common size analysis, the base for prepaid expense is total assets.

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Similar questions

In performing vertical analysis, the base for prepaid expense is ___

Q. From the following information, calculate Liquid Ratio:


Particulars	₹	Particulars	₹
Current Assets	2,00,000	Trade Receivables	1,10,000
Inventories	50,000	Current Liabilities	70,000
Prepaid Expenses	10,000

Apply common size analysis to ABC Company's selling expenses given the following information: Selling expenses = Rs. 60,000; Revenue from Operations = Rs. 2,50,000; Total assets = Rs. 4,25,000; Total liabilities = Rs. 3,00,000.

Q. Calculate Current Ratio, Quick Ratio and Debt to Equity Ratio from the figures given below:


Particulars		₹
Inventory		30,000
Prepaid Expenses		2,000
Other Current Assets		50,000
Current Liabilities		40,000
12% Debentures		30,000
Accumulated Profits		10,000
Equity Share Capital		1,00,000
Non-current Investments		15,000

Q. Consider the following items :
i)Debentures
ii)Prepaid rent
iii)Interest accrued
iv)Bank overdraft
Which of them are current liabilities?

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In performing vertical analysis, the base for prepaid expense is .

The correct option is B Total assetsIn performing vertical analysis i.e.common size analysis, the base for prepaid expense is total assets.

The correct option is B Total assets
In performing vertical analysis i.e.common size analysis, the base for prepaid expense is total assets.