With Regard to Trend Analysis Over Time,which of the Following

question 46

Multiple Choice

With regard to trend analysis over time,which of the following statements is TRUE?

• A)We often look at the past five years of financial statements to establish trends and then predict future performance based on these trends.
• B)To look at trends over time requires that we examine a financial statement at one point in time.
• C)The net income last year was $20,000 and the past five years has shown an increase of 10% on average for each of these five years.The predicted net income for next year is still $20,000.
• D)It is better to predict future performance by basing it solely on net income than on all the individual accounts.

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Definitions:

Ethnomethodological

Relating to ethnomethodology, a sociological perspective focusing on the ways in which social order is produced in and through everyday interactions.

Conversational Analysis

A methodology in sociolinguistics that studies the structure and function of conversation in human communication.

Humor

Humor is identified as the quality of being amusing or funny, often characterized by expressions, gestures, or the articulation of ideas that are perceived as entertaining.

Ethnomethodologists

Sociologists who study how people use everyday conversation and gestures to construct a shared social order.