To Calculate a Year-To-Year Percentage Change in Any Financial Statement

question 139

Multiple Choice

To calculate a year-to-year percentage change in any financial statement line item such as sales,you should take the current year's amount,subtract the prior year's amount,then divide by ______,and finally multiply the result by 100.

• A)net income
• B)total assets
• C)the current year's amount
• D)the prior year's amount

---

Definitions:

Twin Deficits

Refers to the situation where a country is running both a fiscal deficit (government spending exceeds revenue) and a current account deficit (imports exceed exports).

Budget Deficit

The condition when a government spends more than its income, requiring it to borrow money or accumulate debt to cover the gap.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to negative balance of trade.

Real Exchange Rate

A measure that adjusts the nominal exchange rate by the relative prices of domestic and foreign goods and services, reflecting the purchasing power of two currencies.