A horizontal analysis is being conducted with year one as the base year.If year one equals $800, year two equals $840, and year three equals $896, the percentage of the base period for year three is
A)89%.
B)100%.
C)105%.
D)112%.

Question

Quizplus · Accepted Answer

The percentage of the base period for year three is calculated by dividing year three's amount ($896) by the base year amount ($800) and then multiplying by 100. This results in (896/800) * 100 = 112%.

A Horizontal Analysis Is Being Conducted with Year One as the Base