During the years 2009 through 2011, Powers, Inc., reported the following amounts of net income (dollars in thousands): Relative to the prior year, the percentage change in net income:
A) Was the same in 2010 and 2011.
B) Was larger in 2011 than in 2010.
C) Was smaller in 2011 than in 2010.
D) Cannot be determined without knowing how many shares of stock were outstanding.

Question

Quizplus · Accepted Answer

The percentage change in net income can be calculated by comparing the net income of each year to the previous year. If the percentage increase from 2009 to 2010 is larger than from 2010 to 2011, then the change was smaller in 2011 than in 2010.

During the Years 2009 Through 2011, Powers, Inc