Accounting for IGCSE & O level - Final Statements (Section 13 - No. 13)
What is the general advantage of presenting a statement of financial position in a vertical format?
It allows for the easy calculation of depreciation.
It's easier to understand and see how the assets, liabilities, and capital are related.
It makes it easier to analyze profit and loss.
It's suitable for sole traders but not for businesses.
Explanation
A vertical format generally makes it easier to understand the relationships between different categories of assets, liabilities, and equity.
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