Instructions

If possible, using real information from your organization (from the income statement or balance sheet), select a specific account that shows information from two years (or periods). Based on your interpretation of that information, make a conclusion on the potential impact of that trend upon the organization.

For example: if your organization shows historical information on the net income such as these numbers: 2019 = $40,000; 2020 = $35,000; 2021 = $30,000; you might conclude that the organization is showing a declining trend in its net income which you might infer that, if that continues, ,it might hurt the organization in the medium to long run. You might also want to explain a little further if you have more knowledge about what is behind that trend.