The techniques which are used to identify financial statements trends include __________?
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 converts statement items into percentages of a common base, while percent-change analysis tracks movement across periods. Both are used to identify trends in financial statements.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?
A formula such as net income available to common stockholders divided by common equity is used to calculate __________?
The companies that help to set benchmarks are classified as ___________?
The price per ratio is divided by cash flow per share ratio, is used for calculating __________?
The formula such as, net income available for common stockholders divided by total assets is used to calculate __________?
The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be ___________?