In Horizontal Analysis, the Percentage of a Base-Period Amount Is

question 61

Multiple Choice

In horizontal analysis, the percentage of a base-period amount is calculated by

• A)dividing the analysis period amount by the base period amount.
• B)dividing the dollar amount of the change since the base period by the base period amount.
• C)dividing the item under analysis by net sales.
• D)dividing the item under analysis by total assets.

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Definitions:

Par Value

A dollar amount assigned to each share of stock.

Clean Audit Opinion

An auditor's statement that a company's financial statements are accurate, fair, and in accordance with accounting standards.

Unmodified Opinion

An auditor's report that concludes the financial statements of an entity are fairly and appropriately presented, without any identified exceptions.

Unusual Items

Refers to uncommon or rare transactions that are not expected to occur frequently within the normal course of business.