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Which of the Following Statements Is True of Trend Analysis

Question 61

Multiple Choice

Which of the following statements is true of trend analysis?


A) It tracks the percentage changes of items in financial statements over several years.
B) It computes percentages by dividing one account or line-item amount by another.
C) It expresses the line item as a percentage of some other line item for the same period.
D) It measure the ability of a company to meet its current obligations.

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