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To compute trend percents the analyst should______________.
A.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.B.Subtract the analysis period number from the base period number.C.Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.D.Compare amounts across industries using Dun and Bradstreet.

Respuesta :

Answer:

A.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.

Explanation:

The trends percentages are similar to horizontal analyzes, except that comparisons are made based on the selected base year or cycle. Trend percentages are useful for comparing financial statements over several years as they explain changes over time and trends. You can calculate Trend percentages as follows:

- Selection of year or semester and the base year period.

- Assign 100% weight to the amounts in the financial statements of the base year.

- In the financial statements of other years, the corresponding amounts are expressed as a percentage of the base year or period then calculate percentages by year / base year and click 100 to get one percent.