If the Assets Shown on a Balance Sheet Are Subjected

question 101

Multiple Choice

If the assets shown on a balance sheet are subjected to vertical analysis (using total assets as the base) ,an increase in the figure for non-current assets from 40% to 55% would always mean that:

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

---

Definitions:

Hypothesis Test

A statistical technique that employs data from a sample to test a theory regarding a characteristic of the entire population.

Long-Distance Calls

Telephone calls made to a different geographic region, typically characterized by higher rates compared to local calls.

Type I Error

The error made in statistical hypothesis testing when a true null hypothesis is incorrectly rejected.

Mean Battery Life

The average length of time a battery can power a device before needing to be recharged or replaced, calculated from a set of samples or tests.