When a financial analyst determines the percentage change in operating income for the five-year period from 2019 to 2023, she is performing a
A)time series analysis.
B)vertical analysis.
C)profitability analysis.
D)cross-sectional analysis.

Question

Quizplus · Accepted Answer

Time series analysis involves analyzing the change in data over a period of time. In this case, the financial analyst is determining the percentage change in operating income for a five-year period, indicating that she is performing a time series analysis. Vertical analysis involves analyzing the components of financial statements as a percentage of a base value, profitability analysis involves assessing a company's ability to generate profits, and cross-sectional analysis involves comparing financial data for different companies or industries.

When a Financial Analyst Determines the Percentage Change in Operating