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

question 115

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 data shown for total current assets?

• A)Current assets grew as a percentage of total assets over the 2-year period.
• B)Current assets are equal to 23.2% of net sales in 2014.
• C)In 2014, current assets grew by 23.2% compared to 2013.
• D)In 2014, current assets as a percentage of total assets declined over the previous year.

---

Definitions:

Export Subsidies

Financial assistance grants provided by governments to domestic companies to encourage exports, making their products more competitively priced in the global market.

Import Restraints

Measures applied by countries to limit the quantity of goods that can be imported, such as tariffs and quotas.

Trade Surpluses

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Balance of Trade

The difference between a country's exports and imports of goods, indicating the net earnings from trade.