A type of analysis that indicates the direction a business is taking is:
A)benchmarking.
B)current ratio.
C)vertical analysis.
D)trend percentages.

Question

Quizplus · Accepted Answer

Trend percentages analyze changes in financial data over multiple periods and can indicate whether a business is improving or declining in certain areas. Benchmarking compares a business to other similar businesses and may not necessarily indicate direction. Current ratio and vertical analysis are useful but do not specifically indicate the direction of the business.

A Type of Analysis That Indicates the Direction a Business