To calculate a year-to-year percentage change in any financial statement line item such as sales,you should take the current year's amount,subtract the prior year's amount,then divide by ______,and finally multiply the result by 100.
A)net income
B)total assets
C)the current year's amount
D)the prior year's amount

Question

Quizplus · Accepted Answer

To calculate a year-to-year percentage change, you need to compare the current year's amount to the prior year's amount. Therefore, you should subtract the prior year's amount from the current year's amount and then calculate the percentage change using the formula: [(Current year's amount - Prior year's amount)/ Prior year's amount] x 100. In this formula, only the prior year's amount is used in the denominator, so the correct answer is D – the prior year's amount.

To Calculate a Year-To-Year Percentage Change in Any Financial Statement