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 s

Question

2 years ago

7

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 s

heet 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

Business

1 answer:

Nina [5.8K] · Answer 1 · 2022-08-06T23:05:30+03:00

Nina [5.8K]2 years ago

8 0

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.