An accountant is completing a trend analysis for a company by comparing sales for years 2003 through 2013.The base year for the calculations is 2003.

Question

Quizplus · Accepted Answer

The fact that the accountant is using 2003 as the base year for trend analysis implies that the accountant is comparing all other years' sales to the sales in the base year. This is a common practice in financial analysis to determine the percentage change or growth over a period of time.

An Accountant Is Completing a Trend Analysis for a Company