Knowing the dollar amount of change from year-to-year in an account is less relevant than knowing the percentage change.

Question

Quizplus · Accepted Answer

Percentage change provides a more accurate understanding of the growth or decline of an account, as it takes into account the starting point and the size of the change relative to the total amount. Dollar amount change can be misleading if the starting amount is vastly different or if the overall account balance is low.

Knowing the Dollar Amount of Change from Year-To-Year in an Account