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

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.

In horizontal analysis, the current year is the base year.

Definitions

Learning Objectives

Learning Objectives

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