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:

Bilateral Descent

A system of family lineage in which the relatives on both the mother's and the father's sides are considered equally important.

Clans

A clan represents a group of people united by actual or perceived kinship and descent, commonly sharing a common ancestor and often associating with a specific region or territory.

Genealogical Depth

Refers to the number of generations traced back in a family or kinship group, indicating the extent of ancestral lineage.

Social Organization

The patterning of social relationships and structures within a society or among groups.