If a Balance Sheet Is Subjected to Vertical Analysis Which

question 120

Multiple Choice

If a balance sheet is subjected to vertical analysis which shows that current assets (using total assets as the base) have increased from 42% to 56%, this would always mean that:

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

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Definitions:

Rightly

In a manner or to an extent that is justified, appropriate, or correct.

Morally Right

Actions or behaviors that are consistent with ethical principles and are considered justifiable and good.

Final Goal

The ultimate objective or ambition that an individual, group, or organization is striving to achieve.

Virtuous Activity

Activities that are conducted in accordance with moral and ethical virtues, promoting character and moral goodness.