Which of the following types of analyses would show whether sales increased by $160,000 from one year to the next?
A)A receivables turnover analysis.
B)A common-size analysis.
C)A trend analysis.
D)A profit margin ratio analysis.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

A trend analysis compares financial data over time to identify any upward or downward patterns. By comparing sales from one year to the next, a trend analysis could easily show whether sales increased by $160,000. A receivables turnover analysis measures how quickly a company collects its accounts receivable, a common-size analysis expresses financial information as a percentage of a common figure, and a profit margin ratio analysis measures the percent of each dollar of revenue that a company keeps as profit. None of these analyses would provide information about whether sales increased by a specific dollar amount.

Which of the Following Types of Analyses Would Show Whether