What Is Trend Analysis

question 24

Multiple Choice

What is trend analysis?

• A) When numerical data are available, a trend can be plotted to display changes through time and into the future
• B) A trend is examined to identify its nature, causes, speed of development, and potential impacts
• C) Trends viewed as particularly important in a specific community, industry, or sector are carefully monitored, watched, and reported to key decision makers
• D) Complex systems can be modeled by means of mathematical equations and different scenarios can be run against the model to determine "what if" analysis

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Definitions:

Optional Exemptions

Certain allowances or exemptions available under specific regulations or standards that entities can choose to apply or not.

Goodwill

The excess value of a purchased company over its identifiable tangible and intangible assets, reflecting intangible factors such as brand reputation or customer relations.

Opening Balance Sheet

The initial financial statement of a company, showing assets, liabilities, and equity at the start of a new accounting period.

Pooling Method

A method used in accounting for business combinations where the assets and liabilities of the combining companies are simply pooled together and recorded at historical cost.