In Horizontal Analysis, If an Item Has a Negative Amount

question 69

True/False

In horizontal analysis, if an item has a negative amount in the base year, and a positive amount in the following year, no percentage change for that item can be calculated.

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Definitions:

Budgeting Formulas

Mathematical expressions or calculations used in the process of preparing budgets, forecasting revenues, and controlling costs.

Employee Salaries and Wages

Payments made to employees for their labor, including regular salaries and hourly wages.

Customers Served

The number of individual clients or customer accounts that receive goods or services from a business over a specific period.

Flexible Budget

An adaptive financial plan that changes in accordance with variations in volume or activity rates.