Asked by Lupita Sanchez on Jun 29, 2024

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Verified

Trend statements help the user

A) determine the reason(s) for changes over time in each financial statement line item.
B) spot relationships among financial statement items.
C) spot changes over time in each financial statement line item.
D) identify variations between companies in financial statement line items.

Trend Statements

Rephrased: Financial reports highlighting the development and direction of financial indicators over several periods, facilitating the identification of patterns and trends.

Financial Statement Line Item

A financial statement line item refers to any single entry that appears in the financial statements, representing financial numbers or details.

  • Assess the financial health of businesses and juxtapose this through the use of trend and common-size financial statements.
verifed

Verified Answer

MA
MUHAMMAD ABRAR BHATJul 06, 2024
Final Answer :
C
Explanation :
Trend statements are primarily used to spot changes over time in each financial statement line item, allowing users to track performance and identify patterns.