The Changes in Financial Statement Items from a Base Year

question 77

Multiple Choice

The changes in financial statement items from a base year to following years are called:

• A)Money changes.
• B)Trend percentages.
• C)Component percentages.
• D)Ratios.

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Definitions:

Current Assets

Current Assets are all assets of a company that are expected to be sold, consumed, or converted into cash within one year or within the operating cycle of a business.

Long-Term Liabilities

Obligations expected to be paid more than one year in the future.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.

Base Year

A specific year or period selected as a reference point for comparison with subsequent years or periods in financial and economic analyses.