Asked by Pamela Hernandez on Jun 29, 2024

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The dollar change for a comparative financial statement item is calculated by:

A) Subtracting the analysis period amount from the fair value amount.
B) Subtracting the base period amount from the analysis period amount.
C) Subtracting the analysis period amount from the base period amount,dividing the result by the base period amount,then multiplying that amount by 100.
D) Subtracting the base period amount from the analysis period amount,dividing the result by the base period amount,then multiplying that amount by 100.
E) Subtracting the base period amount from the analysis amount,then dividing the result by the base amount

Comparative Financial Statement

Financial statements that present information for more than one period, facilitating the analysis of trends over time.

Analysis Period

The specific time frame over which financial or operational performance is analyzed and evaluated.

Base Period

A specific time period used as a benchmark or point of reference for comparing financial or economic data over time.

  • Calculate and interpret changes and trends in financial statement items.
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Verified Answer

JJ
Juan José Guerrero BoteroJun 30, 2024
Final Answer :
B
Explanation :
The dollar change for a comparative financial statement item is calculated by subtracting the base period amount from the analysis period amount, which directly compares the two periods without adjusting for scale or percentage change.