Which of the Following BEST Describes Trend Analysis

question 35

Multiple Choice

Which of the following BEST describes trend analysis?

• A) Calculating key ratios to evaluate performance
• B) Showing each figure as a percentage of some other amount, such as total assets
• C) Comparing a company's financial figures with other companies that are leaders
• D) Showing each year's figures as a percentage of amounts for a base year

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them the owners of the corporation to the extent of the shares they hold.

Sole Proprietorship

A business in which one person (sole proprietor) is in control of the management and profits.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs involved in maintaining the operation.