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Techniques which are used to identify financial statements trends include: -

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Question

Techniques which are used to identify financial statements trends include:

Options

  • Common Size Analysis

  • Percent Change Analysis

  • Returning Ratios Analysis

  • Both Common Size Analysis and Percent Change Analysis

MCQ

Solution

Both Common Size Analysis and Percent Change Analysis

Explanation:

To determine the trend of financial statements, apply common size analysis and percent change analysis.

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Tools of Analysis of Financial Statements
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