From a Time- Series Graph Showing Sales of Shoes in Dollars

question 436

Multiple Choice

From a time- series graph showing sales of shoes in dollars on the vertical axis, it is not possible to tell

• A) the changes in sales over time.
• B) the level of sales at a given time.
• C) the speed of change in sales over time.
• D) None of the above answers is correct because it is possible to tell all of the above from the time- series graph described.

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Definitions:

Common Size Analysis

A financial analysis technique that expresses each line item on a financial statement as a percentage of a base figure to allow for comparison.

Financial Statement

A written record detailing the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Base Amount

A reference value or level in financial calculations, often serving as a benchmark for comparing financial performance or changes.

Horizontal Analysis

A technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage.