When Horizontal Analysis Is Performed, No Percentage Change Is Computed

question 85

True/False

When horizontal analysis is performed, no percentage change is computed for a given item if there is no balance for that item in the base year.

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Definitions:

Ability-To-Pay Philosophy

A principle that asserts taxes should be levied based on an individual's or entity's capacity to pay, implying those with higher income or wealth should pay more in taxes.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, imposing higher rates on those with higher incomes.

Taxation

The process by which a government levy charges on citizens or corporate entities to finance government spending and activities.

Sales And Excise Taxes

Taxes placed on the sale or manufacture of goods and services, collected by the government.