Match each term to its best description or definition.
-Trend analysis
A)Full or partial statements expressed in percentages of a given base.
B)Requires full financial statements on a quarterly basis.
C)All statement figures are expressed as a percentage of a base figure from that year's statement.
D)A breakdown by major lines of business,only required in SEC reporting.
E)A breakdown by major lines of business.
F)All statement figures are expressed as a percentage of base-year figures.
G)Requires estimation of some expense items.
H)A comparison of financial data over time.
I)Visual aids to understanding financial data.

Question

Quizplus · Accepted Answer

Trend analysis is a comparison of financial data over time.

Answer: F
 In trend analysis, all statement figures are expressed as a percentage of base-year figures.

Answer: G
 Trend analysis may require estimation of some expense items.

Answer: E
 A breakdown by major lines of business is a type of financial analysis, but not necessarily specific to trend analysis.

Answer: I
 Visual aids to understanding financial data may be used in trend analysis, but are not unique to this type of analysis.

Answer: A, C
 Both A and C describe the use of percentages in financial statements, but do not specifically refer to trend analysis.

Answer: B, D
 Both B and D refer to specific reporting requirements, but are not directly related to trend analysis.

Match Each Term to Its Best Description or Definition