Answer to Question #5646 in Finance for LaMarcus Streeter

Question

Under which of the following cases may a percentage change be computed?

The trend of the balances is decreasing but all balances are positive.

There is no balance in the base year.

There is a negative balance in the base year and a positive balance in the subsequent year.

There is a positive balance in the base year and a negative balance in the subsequent year.

Answer 1

Under which of the following cases may a percentage change be computed: The
trend of the balances is decreasing but all balances are positive. Because
percentages are used to express how large/small one quantity is, relative to
another quantity. The first quantity usually represents a part of, or a change
in, the second quantity, which should be greater than zero.