A horizontal analysis is being conducted with year one as the base year.If year one equals $900, year two equals $960, and year three equals $995, the percentage of the base period for year three is
A)89%.
B)100%.
C)106%.
D)111%.

Question

Quizplus · Accepted Answer

In a horizontal analysis, the percentage of the base period for a given year is calculated by dividing the amount in the given year by the amount in the base year and then multiplying by 100. For year three, this calculation is ($995 / $900) * 100 = 110.56%, which rounds to 111%.

A Horizontal Analysis Is Being Conducted with Year One as the Base