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.If the base year is negative and the following year is positive,the percentage change is not useful.

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Quizplus · Accepted Answer

If the base year is negative and the following year is positive, the percentage change can still be useful as it indicates an improvement from the negative base year. However, the percentage change should be interpreted with caution as it does not provide a complete picture of the overall financial performance. It is important to analyze other financial ratios and indicators to evaluate the company's financial health.

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