Trend analysis is analysis
A)of dollar changes and percentage changes over several years.
B)in which all items are presented as a percentage of one selected item on a financial statement.
C)in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
D)of all ratios that increased or decreased over past accounting periods.

Question

Quizplus · Accepted Answer

Trend analysis involves analyzing dollar changes and percentage changes over several years to identify trends and patterns in financial data. Option B describes common-size analysis, option C describes ratio analysis, and option D is too broad and does not specifically describe trend analysis.

Trend Analysis Is Analysis