Which One of the Following Statements About Trend Analysis Is

question 64

Multiple Choice

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

• A) The benchmark for trend analysis is based on a firm's historical performance.
• B) It allows management to examine each ratio over time and determine whether the trend is good or bad for the firm.
• C) It 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:

Q-T Interval

A measurement on an electrocardiogram (EKG) that represents the time for the electrical system of the heart to depolarize and repolarize.

Deflections

Movements of an object or path away from its original course, often due to external forces or influences.

ECG

Electrocardiogram, a medical test that measures the electrical activity of the heart to identify various heart conditions.

Letters

Written symbols representing sounds or phonemes, forming the building blocks of written words in alphabetic systems.