Question

What is trend analysis?

Hint:

Trend = direction of movement of financial results.

Answer 1

Step 1: Define. Trend analysis = horizontal analysis of financial statements.
Step 2: Method. Base year = 100, other years compared as percentage of base year.
Step 3: Utility. - Shows growth/decline. - Useful for forecasting.
Final Answer: \[ \boxed{\text{Study of change over time using base year = 100}} \] % Quciktip