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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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. liabilities have increased as a percentage of total assets
OB. the current ratio has decreased
C. the dollar amount of owners' equity has decreased
OD. the dollar amount of liabilities has increased
ynloa
Transcribed Image Text: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. liabilities have increased as a percentage of total assets OB. the current ratio has decreased C. the dollar amount of owners' equity has decreased OD. the dollar amount of liabilities has increased ynloa
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