If Vertical Analysis,using Total Assets as the Base,shows That Total

question 57

Multiple Choice

If vertical analysis,using total assets as the base,shows that total liabilities have increased from 50% to 63%,this would always mean that:

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

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Definitions:

Fluid-Filled Tube

A tube that contains fluid, often found in biological systems and mechanical devices, used for various functions such as cushioning or transport.

Pitch

A tone’s experienced highness or lowness; depends on frequency.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Steel Towns

Urban areas primarily developed around and dependent on the steel industry, characterized by steel mills, worker housing, and often a strong sense of community among workers.