Conduct a vertical analysis from the Balance Sheet below and select the INCORERECT observationBalance SheetParticulars1. Equity And Liabilities:1. Shareholder's Funds(a) Share Capital(b) Reserve and Surplus2. Non-Current Liabilities3. Current LiabilitiesII. Assets:1. Non-Current Assets2. Current AssetsTotalNoteNo.AmountA Ltd.8 Ltd.4,00,0005,40,0002,00,000 2,60,0003,00,000 2,50,0001,00,000 1,50,00010,00,000 12,00,0004,00,000 7,00,0006,00,000 5,00,000www.Totalgoel 10,00,000 12,00,000O a. In comparison to B. Ltd, A Ltd's existing liabilities are (10%) are in a stronger way (12.50%)O b. In comparison to A Ltd, B Ltd has a higher share capitalO c. B Ltd's Non Current Assets are 18.33% higher than A LtdO d. In comparison to A Ltd, B Ltd has a stronger long term statusO e. B Ltd's Current Assets are 18.33% higher than A Ltd

Vertical Analysis is a technique through which various figures of assets and liabilities are…

Answered: Conduct a vertical analysis from the…

Business

Accounting

Conduct a vertical analysis from the Balance Sheet below and select the INCORERECT observation

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 11MCQ

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Question

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Conduct a vertical analysis from the Balance Sheet below and select the INCORERECT observation
Balance Sheet
Particulars
1. Equity And Liabilities:
1. Shareholder's Funds
(a) Share Capital
(b) Reserve and Surplus
2. Non-Current Liabilities
3. Current Liabilities
II. Assets:
1. Non-Current Assets
2. Current Assets
Total
Note
No.
Amount
A Ltd.
8 Ltd.
4,00,000
5,40,000
2,00,000 2,60,000
3,00,000 2,50,000
1,00,000 1,50,000
10,00,000 12,00,000
4,00,000 7,00,000
6,00,000 5,00,000
www.Totalgoel 10,00,000 12,00,000
O a. In comparison to B. Ltd, A Ltd's existing liabilities are (10%) are in a stronger way (12.50%)
O b. In comparison to A Ltd, B Ltd has a higher share capital
O c. B Ltd's Non Current Assets are 18.33% higher than A Ltd
O d. In comparison to A Ltd, B Ltd has a stronger long term status
O e. B Ltd's Current Assets are 18.33% higher than A Ltd

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