If the Assets Shown on a Balance Sheet Are Subjected

question 70

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 current assets from 56% to 60% would always mean that:

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

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Definitions:

Pancreas

An organ in the digestive and endocrine systems that produces hormones such as insulin and digestive enzymes.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Bloodstream

The flowing blood within the circulatory system of the body.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs, influencing growth, metabolism, and mood.