The Formula for the Percentage Change in a Financial Statement

question 16

Multiple Choice

The formula for the percentage change in a financial statement line item is the current year amount:

• A)divided by the base year amount.
• B)minus the base year amount divided by the base year amount.
• C)minus the base year amount divided by current year amount.
• D)added to the base year amount divided by the base year amount.

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Definitions:

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries, known as the member states of the euro area.

Journal Entries

The recorded logs of financial transactions in an accounting system, detailing accounts affected, amounts, and date.

Foreign Currency

Currency used in a country other than one’s own, involving the exchange of currencies in the global market for trading, investment, and finance.

Merchandise

Goods that are bought and sold in a retail or wholesale environment.