Oglethorpe Company Reports the Following Information from the Vertical Analysis

question 13

Multiple Choice

Oglethorpe Company reports the following information from the vertical analysis of their balance sheet: Which of the following statements could be logically concluded from the above data?

• A)The company's current ratio declined.
• B)The company's current assets declined in proportion to its total assets.
• C)The company's ability to pay current liabilities declined.
• D)The company's total current assets declined by 0.4%.

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Definitions:

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and transportation of alcoholic beverages were illegal, as mandated by the 18th Amendment and the Volstead Act.

Fordney-McCumber Tariff

A set of tariffs introduced in 1922 that raised American import duties to protect factories and farms, leading to increased international trade tensions.

Free Trade

An economic policy that allows goods and services to be traded across borders without tariffs, quotas, or other restrictions.