Asked by Susan Nguyen on May 26, 2024
Verified
When no value is in the base period,no percent change is computable.
Base Period
A specified time period against which conditions in other time periods are compared, often used in economic and financial analysis.
Percent Change
A mathematical calculation that shows how much a quantity has increased or decreased in comparison to its previous value, often expressed as a percentage.
- Recognize the shortcomings of financial statement analysis in the context of projecting future performance.
Verified Answer
FB
Felicia BurnsMay 30, 2024
Final Answer :
True
Explanation :
This is true because percent change is calculated as [(new value - old value)/old value] x 100. If there is no value in the old or base period, it is impossible to calculate the change or percentage change.
Learning Objectives
- Recognize the shortcomings of financial statement analysis in the context of projecting future performance.