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Sagot :
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 percentage change analysis.
In the field of business, a percentage change analysis is a change in the balance sheet account in a year. In other words, a percentage change analysis shows the percentage change or growth change of products from a given period limit.
Percentage change analysis helps to determine the growth rate that occurred for certain products in a base year based on the balance sheet and income statement. Based on percentage change analysis, further strategies of a company can be planned.
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