When a Horizontal Analysis Is Performed and a Zero or Negative

question 177

Multiple Choice

When a horizontal analysis is performed and a zero or negative amount is reported in the base year, then

• A) no percentage change can be computed.
• B) the percent change will be negative.
• C) the accountant has made a mistake.
• D) the percentage change will be 100% of greater.

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Recognize the importance of vocal qualities in delivering a presentation.

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Definitions:

Margin Error

The maximum expected difference between the true population parameter and a sample estimate of that parameter.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, often expressed in terms of a percentage indicating the degree of confidence.

Random Sampling Errors

Variability in sample statistics from sample to sample due to the method of choosing a random subset of the population.

Significance Tests

Statistical tests used to determine if the results of a study are likely to be due to chance or if they are significant.