To compute trend percentages the analyst should:
A) Compare amounts to a competitor.
B) Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number.
C) Subtract the analysis period number from the base period number.
D) Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.
E) Compare amounts across industries using Dun and Bradstreet.

Question

Quizplus · Accepted Answer

To compute trend percentages, the analyst should select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number. This allows the analyst to compare how each item has changed over time relative to the base period.

To Compute Trend Percentages the Analyst Should