Time-series analysis helps answer all of the following questions except:
A) Is the firm becoming more or less profitable over time?
B) Is the firm becoming more or less risky?
C) How is management of the firm responding to external economic forces?
D) What is the amount of assets or capital required to generate a particular level of earnings?

Question

Quizplus · Accepted Answer

Time-series analysis can help determine trends in profitability, risk, and management response to external forces over time. However, it is not the best tool for determining the amount of assets or capital required to generate a particular level of earnings, as this requires more detailed financial analysis such as cost-volume-profit (CVP) analysis or capital budgeting.

Time-Series Analysis Helps Answer All of the Following Questions Except