When horizontal analysis is performed, no percentage change is computed for a given item if there is no balance for that item in the base year.

Name: When horizontal analysis is performed, no percentage change is computed for a given item if there is no balance for that item in the base year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. If there is no balance for an item in the base year, there is nothing to compare it to in the current year and therefore no percentage change can be computed.

When Horizontal Analysis Is Performed, No Percentage Change Is Computed