Which One of the Following Statements About Trend Analysis Is

question 9

Multiple Choice

Which one of the following statements about trend analysis is NOT correct?

• A) A firm's historical performance determines the benchmark for trend analysis.
• B) Trend analysis allows management to examine each ratio over time and determine whether the trend is good or bad for the firm.
• C) Trend analysis uses the Standard Industrial Classification (SIC) System to benchmark firms.
• D) A ratio value that is changing typically prompts the financial manager to sort out the issues surrounding the change.

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Definitions:

Workers' Rights

A set of legal rights and claimed human rights having to do with labor relations between workers and their employers, usually obtained through collective bargaining and labor legislation.

Free Market Capitalism

An economic system where prices for goods and services are determined by the open market and consumers, with minimal governmental intervention.

Adam Smith

An 18th-century Scottish economist and philosopher known as the father of modern economics, best known for his theories on free markets and the invisible hand.

Morals

Principles or habits with respect to right or wrong conduct, often influenced by cultural, religious, or personal beliefs.