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

Name: If the base-year amount is zero,we can't calculate a percentage change under horizontal analysis.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

In order to calculate a percentage change using horizontal analysis, we need a base-year amount to compare the current year amount to. If the base-year amount is zero, there is nothing to compare the current year amount to and therefore we cannot calculate a percentage change.

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