Which of the following statements about trend analysis is correct?
A)Time-series analysis is an example of trend analysis.
B)Trend data are always in dollars.
C)Trend analysis is also known as vertical analysis.
D)Common-size analysis is an example of trend analysis.

Question

Quizplus · Accepted Answer

Horizontal analyses compare individual financial statement line items horizontally (from one period to the next),with the general goal of identifying significant sustained changes (trends).Because it compares results over a series of periods,it is sometimes called time-series analysis.

Which of the Following Statements About Trend Analysis Is Correct