To Compute Trend Percentages the Analyst Should

question 182

Multiple Choice

To compute trend percentages 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.
• E)Compare amounts to a competitor.

---

Definitions:

Civil Penalties

Civil penalties are fines or other forms of punishment imposed by a governmental agency for violations of regulatory laws or ordinances, not involving criminal prosecution.

Government Regulation

The act of controlling, directing, or managing activities, industries, or entities by a governing body.

Business Law

A branch of law that deals with the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and conduct business.