Vertical analysis is a system of arranging financial statements so that entries are arranged in columns; equities, liabilities and assets are broken down in one column with pertinent related information, such as dollar value and percentage of the whole, following in subsequent columns. This arrangement simplifies the process of comparing balance sheets.
Vertical analysis accounting courses can be taken as part of associate's, bachelor's and master's programs in accounting, business and finance-related fields. Those individuals who seek jobs as accountants usually need at least a bachelor's degree in accounting, while associate's programs typically lead to work as an accounting clerk. It is necessary to become certified in order to work as a CPA (certified public accountant). Students can apply for certification through their State Board of Accountancy.
Here are a few common concepts taught in vertical analysis accounting courses:
- Horizontal analysis
List of Common Vertical Analysis Courses
Vertical Analysis and Financial Statements Course
Students are introduced to methods for analyzing financial statements in this course. These techniques include vertical analysis and horizontal analysis. Topics such as safety margins and margin distribution are explored. Other areas of study include assets return and ratios.
Introduction to Managerial Accounting Course
In this introductory course, students gain an understanding of how to examine financial statements by utilizing the vertical analysis method. Enrollees are trained to understand and explain managerial concepts and their relationship to business patterns. They are also given the skills to create financial reports that may be used by company management for the purposes of directing and motivating the business.
Managerial Accounting and Analysis Course
Lessons in this beginner's managerial accounting class include accounting responsibility, budgets and corporate accounting. Present value and accounting in manufacturing are other focal points. Students learn how to produce and interpret cash flow statements.
Accounting Spreadsheets and Vertical Analysis Course
The object of this class is teaching participants to utilize spreadsheets and computers to resolve accounting and financial concerns. Students are expected to comprehend spreadsheet commands and principles, and to develop methods for solving problems. They may be required to produce graphic presentations with the aid of spreadsheet software. Vertical analysis and variance analysis are other aspects of this class.
Financial and Vertical Analysis Course
This course explores different ways of performing vertical and horizontal analysis, gauging the financial effects of corporate mergers and analyzing methods of cash disbursement. Participants can gain knowledge of investments and acquisitions. They also develop the skills to make adjustments to balance sheets.