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

Question

Business

Kolby Simpson

23 April, 10:09

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

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Answers (1)

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Brayden Gates · Answer 1

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.

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

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