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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Definitions:

Valid Offer

A valid offer is a clear proposal made by one party to another indicating a willingness to enter into a contract under specified terms, which, if accepted, results in a binding agreement.

Firm Offer

Under the Uniform Commercial Code, a signed, written offer by a merchant containing assurances that it will be held open, and which is not revocable for the time stated in the offer, or for a reasonable time if no such time is stated.

Consideration

In contract law, something of value exchanged between parties that is necessary for a valid contract.

Offeror's Death

refers to the termination of an offer in contract law due to the death of the person making the offer before it is accepted.