1.

Difference between vertical and horizontal balance sheet

Answer»

Answer:

Explanation:

A balance sheet is a STATEMENT of assets,LIABILITIES and capital of a business or any organization at a point of time depicting the income and expenditure made by that particular organization.

It is prepared in two ways being,vertical and horizontal.

A vertical balance sheet is prepared in case  when only one balance sheet is required as in the case of a small ENTITY which operates at LOWER scales,whereas horizontal balance sheet is an additional balance sheet prepared by organizations that work on a BIGGER scale having different departments,branches etc.

A vertical balance sheet will have an asset and a liability column to depict the state of business but a horizontal balance sheet includes many more data with various branches and information.

Horizontal balance is the one prepared to be presented in annual reports and to be signed by auditors whereas vertical is prepared for internal uses.



Discussion

No Comment Found

Related InterviewSolutions