Doogle Corporation Sold a Segment of Its Operations in 2009

question 95

Multiple Choice

Doogle Corporation sold a segment of its operations in 2009 and suffered a one-time loss in 2010. Which of the following would be the most useful in attempting to predict Doogle's performance for 2011?

• A) Doogle's profit from continuing operations in 2009 and 2010.
• B) Doogle's profit in 2009 and 2010
• C) Doogle's total assets at the end of 2010.
• D) Doogle's retained earnings at the end of 2010.

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Definitions:

Seasonal Variation

Refers to periodic fluctuations in data or processes that occur at regular intervals over a year, influenced by the seasons.

Least Squares

A mathematical approach used in regression analysis to determine the best-fit line through data points by minimizing the sum of the squares of the vertical differences between observed and predicted values.

Linear Trend Line

A straight line that best fits the data on a graph, showing the general direction that a set of data is moving towards.

Seasonal Indexes

Factors used to adjust data for regular seasonal variations to better compare data across different times of the year.