Question

2. Trend analysis is significant for ________

a) Profit planning b) forecasting & budgeting

c) Working capital management d) capital rationing​

Answer 1

Answer:

• a) Profit planning

Hope it helps you.

Answer 2

Trend analysis is most significant for Forecasting and Budgeting. ( option - b )

• Trend analysis is a statistical procedure that is performed to evaluate hypothesized non-linear and linear relationships between two quantitative variables like money and year.
• Trend analysis helps us to understand how our business has performed and can predict where current business processes and practices will take us.
• Trend analysis is very important in examining a firm's financial statements because financial analysts can observe how the company's assets have grown over time.
• Trend Analysis is majorly decomposed into three components which are the Trend ( which gives direction in long term ), the seasonal ( systematic, seasonal related movements ), and the irregular ( unsystematic and short-term fluctuations ).

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