Question

Choose the correct formula to determine a trend percentage (A) The total income of the current year minus the total income from a base year.(B) Net profit of the current year divided by net profit of a base year.(C) Net profit of the current year divided by net profit of a base year. (D) An item from any year divided by the same item from a base year, multiplied by 100

Answer 1

Answer:

(D) An item from any year divided by the same item from a base year, multiplied by 100

Explanation:

To calculate the trend percentate you take the balance sheet of two or more years. Then you will assing the older as a base.

You will start dividing the balance of the other years for the base year and multiply by 100 so it is convert to %

for example if Account Receivable is Y1 5,000 Y2 8,000 and Y3 7,000

you will do:

8000/5000 x 100 = 160%

and

7000/5000 x 100 = 140%