Question: 48
(Choose 1 answer)
Which one of the following statements about trend analysis is NOT correct?
A. A firm's historical performance determines the benchmark for trend analysis.
B. Trend analysis allows management to examine each ratio over time and determine whether the trend is good or
bad for the firm.
C. Trend analysis uses the Standard Industrial Classification (SIC) System to benchmark firms.
D. A ratio value that is changing typically prompts the financial manager to sort out the issues surrounding the
change.
