A techniques uses to identify financial statements trends are included____________?
Correct answer: D. Both A and B
- A. Common size analysis
- B. Percent change analysis
- C. Returning ratios analysis
- D. Both A and B
Explanation
Common-size analysis expresses statement items as percentages of a base figure, while percent-change analysis compares figures across periods. Used together, they help reveal both structural changes and financial trends.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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