If a Balance Sheet Is Subjected to Vertical Analysis Which

question 42

Multiple Choice

If a balance sheet is subjected to vertical analysis which shows that current assets (using total assets as the base) have decreased from 53% to 36%,this would always mean that:

• A) the dollar amount of current assets has decreased
• B) current assets have decreased as a percentage of total assets
• C) the dollar amount of total assets has decreased
• D) the dollar amount of total assets has increased