In horizontal analysis the percent change is computed by:
A) Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount.
B) Subtracting the analysis period amount from the base period amount.
C) Subtracting the base period amount from the analysis period amount.
D) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
E) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.

Question

Quizplus · Accepted Answer

The percent change in horizontal analysis is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. This formula helps to determine the percentage increase or decrease in an account balance over time, which can be useful for analyzing financial performance. Therefore, Option E is the correct answer.

In Horizontal Analysis the Percent Change Is Computed By