The horizontal analysis formula is the current year amount:
A) divided by the base year amount.
B) minus the base year amount divided by the base year amount.
C) minus the base year amount divided by current year amount.
D) added to the base year amount divided by the base year amount.

Question

Quizplus · Accepted Answer

The horizontal analysis formula is ((Current Year Amount - Base Year Amount) / Base Year Amount) * 100. Therefore, the correct option is to subtract the base year amount from the current year amount and then divide it by the base year amount. Option B correctly represents this formula.

The Horizontal Analysis Formula Is the Current Year Amount