Which of the following statements about trend analysis is correct?
Multiple Choice
A- Time-series analysis is an example of trend analysis.
B- Trend data are always in dollars.
C- Trend analysis is also known as vertical analysis.
D- Common-size analysis is an example of trend analysis.
Answer - A. Time series analysis is an example of trend analysis.
Time series analysis is a statistical technique that deals with time series data, or trend analysis. time series data means that data is in a series of particular time periods or intervals.
time series analysis is useful when you want to extract information form a time series , to discover the characteristics of a physical system that generates the time series, to predict the changes of a time series, or to improve control over the physical system .
Which of the following statements about trend analysis is correct? Multiple Choice A- Time-series analysis is...
1) Vertical analysis is also referred to as a. time series analysis b. common size analysis c. trend analysis d. financial analysis 2) The dividend yield a. measures the current return on the common stock b. equals dividends per share divided by stock price c. shows market strength, which measures the strength of the owners d. all are true 3) Which of the following would be considered an improper recognition? a. not recording a liability b. classifying a current asset...
Which of the following statements about the receivables turnover analysis is correct? Multiple Choice Accounts receivable decline as companies sell on credit. Accounts receivable increase as companies receive payment. Receivables turnover refers to how fast receivables are collected. The days to collect will increase as the receivables turnover increases.
Which of the following statements is correct with regards to the concept of Time-series Models? A. Time-series models use past values of the time-series to predict future values of these time-series B. Time-series data is classified as "perfect information" C. Time-series analysis are the basis for a wide variety of forecasting methods D. All of these E. None of these
Financial Statement Analysis Identify the tools used for Financial Statement Analysis Horizontal Trend Analysis It is also known as trend analysis. And it evaluates a series of financial statement data over a period. It is used primarily in intra company comparisons. Financial statements facilitate this type of comparison because: Each of the basic financial statements show a minimum of a year Summary of selected data will show 5-10 years. Vertical Common Size Analysis It evaluates financial statement data...
A type of analysis that helps identify similarities and differences across companies or business units at a single moment in time is: Multiple Choice A. cross-sectional analysis. B. trend analysis. C. time-series analysis. D. common-size statements analysis.
Which of the following statements about the interpretation of the financial statements is not correct? Multiple Choice 0 Interpreting the financial statements can only be performed by auditors. 0 Interpreting the financial statements is the final step in the accounting cycle. 0 To interpret the financial statements means to understand and explain the meaning and importance of information in accounting reports. 0 All of these statements are correct.
1) Trend analysis a. identifies changes over time b. focus on important relationships within financial statements c. presents each asset as a percentage of net sales d. presents each liability as a percentage of total liabilities 2) C/G/S divided by average inventory is the a. inventory turnover ratio b. days inventory on hand c. asset turnover ratio d. days to collect 3) Another term for horizontal analysis is a. industrial analysis b. financial analysis c. trend analysis d. common size...
Which of the following statements is true about return on equity (ROE)? Multiple Choice It measures the return on common stockholders’ investment in the assets of the firm. The value of the firm’s ROE is affected by net income. The value of the firm’s ROE is affected by the amount of financial leverage or debt that the firm uses. All of these choices are correct.
Which of the following statements regarding Management's Discussion and Analysis is true? Multiple Choice A) MD&A is required only for Proprietary Fund Financial Statements. B) MD&A is reported in the statistical section of the annual report. C) MD&A is required for comprehensive annual financial reports. D) MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources. E) MD&A is an optional inclusion for state and local government financial statements.
Which of the following statements about positive analysis is correct? A Positive analysis is concerned with what ought to be B. Positive analysis can be used to determine whether policies are good or bad. C. Positive analysis involves value judgments D. Positive analysis is concerned with what is.