Trend analysis and common-size analysis can give sufficient or final answers to the decision maker.

Question

Quizplus · Accepted Answer

Trend analysis and common-size analysis are tools used for financial analysis, but they do not provide sufficient or final answers to the decision maker. These tools are used to identify trends and make comparisons, but other factors such as industry standards, market conditions, and internal factors must also be considered when making financial decisions.

Trend Analysis and Common-Size Analysis Can Give Sufficient or Final