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:

Monthly Interest Rate

The percentage of interest that is calculated and applied on a monthly basis to loans, savings, or investments.

Amortizes

The process of gradually paying off debt through a series of fixed payments over time, which covers both interest and principal.

Monthly Payments

Regular payments made over a period of time towards settling a debted amount, often associated with loans or lease agreements.

Fringe Benefit

Additional compensation provided to employees beyond their base salaries, such as health insurance, retirement plans, and paid time off.