The type of analysis being carried out when a company's gross profit ratio for three years is graphed and compared with the average industry gross profit ratio calculated over the same time period is:
A) gearing analysis.
B) vertical analysis.
C) parallel analysis.
D) trend analysis.

Question

Quizplus · Accepted Answer

This is trend analysis because it involves comparing the company's gross profit ratio over time with the industry average over the same period to determine any trends or patterns.

The Type of Analysis Being Carried Out When a Company's