A horizontal analysis is being conducted with year one as the base year. If year one equals $900, year two equals $960, and year three equals $995, the percentage of the base period for year three is
A) 89%.
B) 100%.
C) 106%.
D) 111%.

Question

Quizplus · Accepted Answer

To find the percentage of the base period for year three, divide year three's amount ($995) by the base year amount ($900) and multiply by 100. ($995/$900) * 100 = 110.56%, which rounds to 111%.

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