Asked by Brendan Callanan on Jun 20, 2024
Verified
The percent change of a comparative financial statement item is computed by subtracting the base period amount from the analysis period amount,dividing the result by the base period amount and multiplying that result by 100.
Comparative Financial Statement
Financial reports that provide a side-by-side comparison of a company's financial position and performance over different periods.
Base Period
A specific time period against which economic or financial data is compared or analyzed.
Analysis Period
The specific span of time over which financial performance is evaluated or investment decisions are analyzed.
- Understand the methodology for calculating percentage changes and analyze their importance in financial analysis.
Verified Answer
NH
Nadine HusseinJun 23, 2024
Final Answer :
True
Explanation :
This is the correct formula for calculating percent change on a comparative financial statement item.
Learning Objectives
- Understand the methodology for calculating percentage changes and analyze their importance in financial analysis.