The form of analysis that looks at trend percentages over a representative period is known as:
A) trend analysis, which is considered a form of horizontal analysis
B) trend analysis, which is considered a form of vertical analysis
C) ratio analysis
D) economic value added analysis

Question

Quizplus · Accepted Answer

Trend analysis looks at trends over time, which is a form of horizontal analysis. It involves calculating the percentage of change in a specific item or account over a period of time to determine if there is an upward or downward trend. Ratio analysis, on the other hand, involves analyzing the relationship between different financial items to evaluate a company's performance. Economic value added analysis is a method used to determine the value a company creates above its cost of capital.

The Form of Analysis That Looks at Trend Percentages Over