Asked by Jessica Pierre on May 31, 2024
Verified
In horizontal analysis, the current year is the base year.
Horizontal Analysis
Financial analysis that compares an item in a current statement with the same item in prior statements in terms of the amount and percentage of change.
Base Year
A specific year chosen as a point of comparison for financial or economic data over time.
- Comprehend the concept and utility of horizontal analysis.
Verified Answer
GG
Gerardo GonzalezJun 01, 2024
Final Answer :
False
Explanation :
In horizontal analysis, the base year is the year for comparison, and the current year's values are expressed as a percentage change from the base year.
Learning Objectives
- Comprehend the concept and utility of horizontal analysis.
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