The Percentage Change in Any Individual Item Shown on Comparative

question 9

Multiple Choice

The percentage change in any individual item shown on comparative financial statements is calculated by dividing the dollar amount of the change from the base period to the current period by:

• A)the average of the amounts shown for the base and the current periods.
• B)the amount shown for the current period.
• C)the base- period amount.
• D)none of the above.

---

Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuer, which may differ from its market value.

Retirement

The act of leaving one's job and ceasing to work, typically upon reaching a predetermined age.

Gain or Loss

A financial result that occurs when the selling price of an asset differs from its initial purchase cost.

Callable Bonds

Securities that the issuer has the option to repurchase before they reach their due date, for a predetermined amount.