Please Refer to the Vertical Analysis of a Section of a Balance

question 8

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet, shown below: Which of the following statements accurately describes the 13.9% shown for Inventory in 2014?

• A)In 2014, inventory grew 13.9% over the previous year.
• B)In 2014, inventory is equal to 13.9% of total assets.
• C)In 2014, inventory was equal to 13.9% of the cash balance.
• D)Inventory declined as a percentage of total assets over the 2-year period.

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Definitions:

Amblyopia

Also known as "lazy eye," a vision development disorder where an eye fails to achieve normal visual acuity, typically due to poor transmission of visual images to the brain.

Melanin

A pigment that gives color to the skin, hair, and eyes, and plays a crucial role in protecting the skin against UV radiation.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Prolactin

A hormone produced by the pituitary gland that stimulates milk production after childbirth and affects sex hormone levels.