Question

At the end of year 1, the balance sheet for the Rich Food Restaurant showed cash at $20,000. At the end of Year 2, the balance sheet showed $40,000 in cash. A horizontal analysis of the balance sheet would show the absolute difference between the two years as
$20,000 T/F

Answer 1

Answer:

The answer is True

Explanation:

Horizontal analysis is the comparison of historical financial information over a series of reporting period (financial periods). It can also be used to project the amounts of various line items into the future.