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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