Hi, I need Accounting help please 1. Time series (or trend) analysis is analysis

Question

Hi, I need Accounting help please

1. Time series (or trend) analysis is analysis in which c a. Ratio increases and decreases are presented for the past two accounting periods b. All items are presented as a percentage of one selected item on a financial statement c. A statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements. C d. Dollar changes and percentage changes in a company's financial statement lines are compared over several years. 2. Turnover ratios differ from the current and quick ratios in that they a. Measure the efficiency with which a company uses its assets. b. Are based on net sales instead of cash. C. Are based on a point in time rather than a period of time. d. Measure the profitability of a company instead of its liquidity

Explanation / Answer

d. Time series ( or trend ) analysis is the analysis in which dollar changes and percentage changes in the company's

financial statements lines are compared over several years.

In this kind of analysis, comapany's financial statements are compared for several years. If there are several years, company's earliest financial statement is taken as base year and all the other compared with base year. The changes in the data of one financial statement to the another financial statement is presented in the form of ratios or %ages.

2) a. Turover ratios differ from the current and quick ratios in that they measure the efficiency with which company uses its assets as it presents no. of times the assets used or replaced with the given level of turnover.

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