In normalizing historical data, monthly revenue may be aggregated into quarterly or even annual data to minimize possible distortions in earnings or cash flow due to inappropriate accounting practices.

Question

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Normalizing historical data often involves aggregating monthly data into quarterly or annual data to reduce the impact of any irregularities or anomalies in the data, such as those caused by inappropriate accounting practices.

In Normalizing Historical Data, Monthly Revenue May Be Aggregated into Quarterly