A company's comparative balance sheets show total assets for 2018 and 2017 as $990,000 and $900,000,respectively.What is the percentage change to be reported in the horizontal analysis?
A)Increase of 10%
B)Decrease of 10%
C)Increase of 9%
D)Decrease of 9%

Question

Quizplus · Accepted Answer

The percentage change is calculated as (New Value - Old Value) / Old Value * 100. So, ($990,000 - $900,000) / $900,000 * 100 = 10%. This represents an increase of 10%.

A Company's Comparative Balance Sheets Show Total Assets for 2018