Practice prompt · Q:multi-period-statement-analysis-and-operating-efficiency/zero-base-001

Handle a zero comparison base

Tests the fail closed policy for an ordinary percentage change when the comparison amount is zero.

Updated Sep 10, 2026 Review due Nov 7, 2026
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A corresponding expense line is $0 in Year 1 and $8,000 in Year 2. Which treatment preserves the mathematical and reporting boundary?

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Answer: A

Choice A. Report the $8,000 transition and explain that ordinary percentage change is undefined because the base is zero.