Asked by Nancy Lainez on May 08, 2024
Verified
A trend percent, or index number, is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.
Base Period
A specific time period used as a reference point to measure changes in economic or financial data over different periods of time.
- Understand the method of calculating and interpreting trend percentages in financial analysis.
Verified Answer
JS
Janvi SharmaMay 12, 2024
Final Answer :
True
Explanation :
This is correct. A trend percent or index number is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100 to express the percentage change.
Learning Objectives
- Understand the method of calculating and interpreting trend percentages in financial analysis.
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