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:

Privately Owned

Describes businesses or assets owned by individuals or companies and not by the government or the public.

Nonprofit Organization

An organization that operates for a collective, public, or social benefit, instead of working for profit or income for its owners or investors.

Political Rally

A large public gathering organized by political entities to garner support, promote agendas, or energize voters.

Profit

The financial gain made in a transaction or business operation, calculated by subtracting total expenses from total revenue.