Under Which of the Following Cases May a Percentage Change

question 169

Multiple Choice

Under which of the following cases may a percentage change be computed?

• A) There is no amount in the base year.
• B) There is a negative amount in the base year and a negative amount in the subsequent year.
• C) The trend of the amounts is decreasing but all amounts are positive.
• D) There is a negative amount in the base year and a positive amount in the subsequent year.

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Definitions:

Financial Statement

Documents that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.

Cash Receipts

The collection of cash during a specific period, often recorded in financial accounting to track the inflow of cash.

Financing Activity

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Operating Activity

Transactions and events related to the primary operations of a business, such as selling products or services.