If current assets were $101,000 in 2015 and $91,000 in 2016, what was the amount of increase or decrease in percentage terms from 2015 to 2016? (Round your final answer to two decimal places, X.XX%.)
A)Increase of 11%
B)Decrease of 11%
C)Increase of 10%
D)Decrease of 10%

Question

Quizplus · Accepted Answer

To calculate the percentage change, we use the following formula:

Percentage Change = ((New Value - Old Value) / Old Value) × 100

Substituting the given values:

Percentage Change = (($91,000 - $101,000) / $101,000) × 100 
Percentage Change = (-$10,000 / $101,000) × 100 
Percentage Change = -9.9%

Since the percentage change is negative, it means that there is a decrease in current assets from 2015 to 2016. Rounded to two decimal places, the percentage decrease is 10.00% which corresponds to Choice D.

If Current Assets Were $101,000 in 2015 and $91,000 in 2016