Trend analysis, Accounting Basics

Trend Analysis:

In the relative and common size financial statements, the data cannot be identified whether it is abnormal or normal as an essential standard is absent.  To conquer this restrictions trend analysis can be used to analyze business data.  Below this method, each item's worth over a phase of time is collected and an arithmetical relationship is ascertained. Typically, the first year is taken as the base year. In further words, under trend analysis, a base year is recognized and the values of a given item in following years are expressed as a percentage of the base year value. The stand year value is typically defined as 100, for ease of understanding or is expressed as a trend ratio.

Posted Date: 10/15/2012 5:54:40 AM | Location : United States







Related Discussions:- Trend analysis, Assignment Help, Ask Question on Trend analysis, Get Answer, Expert's Help, Trend analysis Discussions

Write discussion on Trend analysis
Your posts are moderated
Related Questions
UOIT has recently appointed you to prepare an independent consulting report to analyze the university's current financial position and to provide some recommendations for improve

#Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculatio

1. An accountant records a transaction when cash is paid or received under which basis of accounting?  cash  deferred  accrual  liability  2. When unearned revenue is initially rec

What is Payroll record keeping Employer should maintain payroll records which will supply the name, social security number, address, gross earnings for every payroll, period o


Why it is important for independent auditor to be a member of a professional body?

What is TRIAL BALANCE This statement is a listing on a certain date which demonstrates all accounts and their balances. This generally happen at the end of the month however it

Problems: Please show all calculations. Claudette, Inc., provides warranties for many of its products. The January 1, 2014, balance of the Estimated Warranty Liability account

The magnitude of operating leverage for Perkins Corporation is 3.4 when sales are $100,000, if sales increase to $110,000, profits would be expected to increase by what percent?

basic problems about ledger