If Vertical Analysis,using Total Assets as the Base,shows a Decrease

question 149

Multiple Choice

If vertical analysis,using total assets as the base,shows a decrease in current assets from 50% to 36%,this would always mean that:

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

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Definitions:

Student t Distribution

A probability distribution that is used in hypothesis testing for small sample sizes, when the population standard deviation is unknown.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.

Table

A method for organizing data in rows and columns to facilitate analysis and representation.

Probabilities

A calculation that determines the chances of an event occurring, with values between 0 and 1 to signify probability.