Which of the following statements is not correct?
A) The trend analysis allows the examination of long trends (e.g. ,evolution over 10 years).
B) For trends to be meaningful,the business model must be stable over the period of comparison.
C) The trend analysis is not often applied to the balance sheet.
D) The trend analysis enables the analyst to compare and contrast the financial statements of two and more companies in the same industrial sector or risk class more easily.

Question

Quizplus · Accepted Answer

Trend analysis is typically used to examine the performance of a single company over time, rather than comparing multiple companies.

Which of the Following Statements Is Not Correct