In trend analysis,each item is expressed as a percentage of the
A) total assets amount.
B) retained earnings amount.
C) net income amount.
D) base year amount.

Question

Quizplus · Accepted Answer

Trend analysis involves comparing changes in an item over time. To do this, a base year is usually chosen as a reference point, and all subsequent years are expressed as a percentage of the base year amount. Therefore, in trend analysis, each item is expressed as a percentage of the base year amount (D).

In Trend Analysis,each Item Is Expressed as a Percentage of the