In Horizontal Analysis If an Item Has a Negative Amount

question 144

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 computed.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on debts.

Account Balance

The amount of money in an account, calculated by adding all debits and subtracting all credits.