Assume You Are Using Total Assets as the Base in Vertical

question 13

Multiple Choice

Assume you are using total assets as the base in vertical analysis. Current assets in 2013 are 42%, and are 36% in 2014. This would always indicate that:

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

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Definitions:

Total Cost

The full amount of expenses incurred by a firm in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.