One of the most important applications of ratio analysis is to compare a company's performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively The analysis that involves calculating the growth rates of all items from the balance sheet and income statement relative to a base year is called a: A. Common size balance sheet analysis B. Cash flow change analysis C. Percentage change analysis D. Common size income statement analysis

Respuesta :

Answer:

The correct answer is letter "C": Percentage change analysis.

Explanation:

Percentage change analysis is an approach used to measure the change on certain assets over time. When it comes to the financial statement, it portraits how much two items have changed from one period to the next or from one quarter to another if used in the balance sheet.