In horizontal analysis, if an item has a negative amount in the base year and a positive amount in the following year, no percentage change for that item can be computed.

Name: In horizontal analysis, if an item has a negative amount in the base year and a positive amount in the following year, no percentage change for that item can be computed.
Brand: Quizplus
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Quizplus · Accepted Answer

This is because a negative amount in the base year would result in a negative denominator when calculating the percentage change, which is not meaningful.

In Horizontal Analysis, If an Item Has a Negative Amount