Practice Trend Analysis (3.4.3) - Financial Statement Analysis – ICSE Class 12
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Trend Analysis

Practice - Trend Analysis - 3.4.3

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is trend analysis?

💡 Hint: Think about how businesses track performance over time.

Question 2 Easy

What is the primary purpose of trend analysis?

💡 Hint: Consider what stakeholders might need from financial data.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does trend analysis aim to identify?

A) Only current financial status
B) Patterns over time
C) Single year performance
D) None of the above

💡 Hint: Think about timeframes in financial analysis.

Question 2

True or False: Trend analysis can predict exactly what will happen in the future.

True
False

💡 Hint: Consider the variability of market conditions.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A company noticed that their revenue over the past four years is as follows: Year 1: ₹200,000; Year 2: ₹250,000; Year 3: ₹300,000; Year 4: ₹400,000. Calculate the trend percentage from Year 1 to Year 4.

💡 Hint: Find the growth from the base to the current year, and think in percentage terms.

Challenge 2 Hard

If a company’s production costs are declining over a series of quarters, how might this affect its pricing strategy? Provide an analysis.

💡 Hint: Consider how costs relate to pricing and market competition.

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