Assume you are using total assets as the base in vertical analysis.Current assets in 2016 are 42%,and are 36% in 2017.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

Question

Quizplus · Accepted Answer

When the percentage of current assets decreases, it indicates that the percentage of non-current assets has increased relative to total assets, assuming total assets remain constant or increase.

Assume You Are Using Total Assets as the Base in Vertical