State which of them are true A When ratios of previous years are compared with current years they ar...........

General Accounting Principles Financial statement analysis

State which of them are true?

A) When ratios of previous years are compared with current years, they are called trend ratios.

B) Trend percentages and trend ratios are used in static analysis.

C) Reliability of financial analysis depends upon the reliability of financial data.

Both A and B

Both A and C

Both B and C

All of the above

The comparison of the successive values of each ratio for a single firm over a number of years.
Static analysis refers to study of relationships of various items in the financial statement of one financial year only. In static analysis items of financial statement of a year are compared with the base selected from the same year's statement .Trend percentages and trend ratios are used in static analysis.Horizontal analysis allows financial statement users to easily spot trends and growth patterns.
information is reliable if a user can depend upon it to be materially accurate and if it faithfully represents the information that it purports to present. Significant misstatements or omissions in financial statements reduce the reliability of information contained in them.