If a Balance Sheet Is Subjected to Vertical Analysis Which

question 107

Multiple Choice

If a balance sheet is subjected to vertical analysis which shows that current assets (using total assets as the base) have increased from 36% to 53%, this would always mean that:

• A)the dollar amount of total assets has decreased.
• B)the dollar amount of total assets has increased.
• C)the dollar amount of current assets has increased.
• D)current assets have increased as a percentage of total assets.

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Definitions:

Prompt Shipment

The swift dispatch of goods to the buyer immediately after the confirmation of an order.

Ambiguous Offer

An offer in a contract that is unclear and can be reasonably interpreted in more than one way.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, governing the sale of goods between parties from different countries.