Trend analysis of financial statement items can include comparisons of relations between items on different financial statements.

Question

Quizplus · Accepted Answer

Trend analysis involves comparing financial statement items over time to identify patterns and changes. This can include comparing relationships between items on different financial statements, such as comparing changes in net income to changes in total assets or changes in cash flows from operating activities to changes in accounts receivable.

Trend Analysis of Financial Statement Items Can Include Comparisons of Relations