Using horizontal analysis,if the base year is negative and the following year is positive,the percentage change is just as useful as if the base year and the following year were both positive.

Question

Quizplus · Accepted Answer

When the base year is negative and the following year is positive, the percentage change can be misleading or not meaningful, as it involves a shift from a negative to a positive value, which does not provide a clear indication of the magnitude of change.

Using Horizontal Analysis,if the Base Year Is Negative and the Following