Which of the following best describes trend analysis?
A)calculating key ratios to evaluate performance
B)expressing each financial statement amount as a percentage of a budgeted amount
C)comparing a company's financial statements with that of other companies
D)expressing each year's financial statement amounts as a percentage of the base year amounts

Question

Quizplus · Accepted Answer

Trend analysis involves expressing each year's financial statement amounts as a percentage of the base year amounts in order to identify trends and changes in performance over time. Option A describes ratio analysis, option B describes variance analysis, and option C describes benchmarking.

Which of the Following Best Describes Trend Analysis