In horizontal analysis, the percentage of a base-period amount is calculated by
A) dividing the analysis period amount by the base period amount.
B) dividing the dollar amount of the change since the base period by the base period amount.
C) dividing the item under analysis by net sales.
D) dividing the item under analysis by total assets.

Question

Quizplus · Accepted Answer

Horizontal analysis calculates the percentage change in an item over time by dividing the current period amount by the base period amount.

In Horizontal Analysis, the Percentage of a Base-Period Amount Is