______,whereby we look at trends occurring over time by analyzing financial statements across multiple time periods.
A) Ratio Analysis
B) Leverage Analysis
C) Trend Analysis
D) Absolute Analysis
E) Proportional Analysis

Question

Quizplus · Accepted Answer

Trend analysis involves studying the pattern of changes in financial statements over multiple periods. It helps to identify the direction and rate of change, as well as any unusual fluctuations in performance. Ratio analysis (A) involves calculating and interpreting various financial ratios to assess the profitability, liquidity, and solvency of a company. Leverage analysis (B) involves analyzing the degree of debt financing used by a company to see how it impacts the financial structure and risk profile. Absolute analysis (D) refers to the evaluation of financial statements in absolute terms, such as the dollar amount of revenue or expenses, without considering the size of the company or its specific industry. Proportional analysis (E) involves the comparison of financial data using percentages or ratios to assess their relative significance or trend.

______,Whereby We Look at Trends Occurring Over Time by Analyzing