If the Assets Shown on a Balance Sheet Are Subjected

question 69

Multiple Choice

If the assets shown on a balance sheet are subjected to vertical analysis (using total assets as the base) , a decrease in the figure for noncurrent assets from 55% to 40% would always mean that:

• A)the dollar amount of current assets has decreased.
• B)total noncurrent assets have decreased as a percentage of total assets.
• C)both A and B are correct.
• D)neither A nor B are correct.