Why is it important to do Year over Year (YTD) analysis of Income statement even though a firm is running month over month trend analysis? A) The month over month trend analysis captures the variances; hence, YTD analysis is not required B) YTD analysis help trace a seasonal change C) Significant variances compounded through medium scale variances every month can be spotted though YTD analysis D) YTD analysis is not important as it doesn't help to take a deeper look into business income and expenses E) Both B & C F) Both A & D

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Why is it important to do Year over Year (YTD) analysis of Income statement even though a firm is running month over month trend analysis?
A) The month over month trend analysis captures the variances; hence, YTD analysis is not required
B) YTD analysis help trace a seasonal change
C) Significant variances compounded through medium scale variances every month can be spotted though YTD analysis
D) YTD analysis is not important as it doesn't help to take a deeper look into business income and expenses
E) Both B & C
F) Both A & D
Transcribed Image Text:Why is it important to do Year over Year (YTD) analysis of Income statement even though a firm is running month over month trend analysis? A) The month over month trend analysis captures the variances; hence, YTD analysis is not required B) YTD analysis help trace a seasonal change C) Significant variances compounded through medium scale variances every month can be spotted though YTD analysis D) YTD analysis is not important as it doesn't help to take a deeper look into business income and expenses E) Both B & C F) Both A & D
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