If the Base-Year Amount Is Zero,we Can't Calculate a Percentage

question 48

True/False

If the base-year amount is zero,we can't calculate a percentage change under horizontal analysis.

---

Definitions:

Residual Profits

Profits remaining after all costs, including capital costs such as interest on loan capital and equity capital, have been deducted.

Common Stock

Represents ownership shares in a corporation, granting holders voting rights and a share in the company's profits via dividends.

Lease Residual

The estimated value of a leased asset at the end of the lease term, important for setting lease payments and determining buyout options.