Time$-$series analysis helps identify financial trends:

A$)$ across companies at a single point in time.

B$)$ across business units at a single point in time.

C$)$ over time for a single company or business unit.

D$)$ among the companies that comprise an industry group.

$12)$ Which of the following is not correct with respect to an analyst$$s use of financial

information?

A$)$ Analysts use financial statement information to assess the economic activities of a

company and its condition.

B$)$ The first step to informed financial statement analysis is a careful examination of the

auditor$$s opinion.

C$)$ Analysts need to understand what accounting data do and do not reveal about a

company$$s economic activities and condition.

D$)$ Analysts must always be vigilant about the possibility that accounting distortions are

present and complicate the interpretation of financial ratios, percentage relations, and

trend indices.

$13)$ Common$-$size financial statements recast each statement item as:

A$)$ a percentage using industry averages for the "base number."

B$)$ a percentage using a base year number for each line item.

C$)$ a percentage of some "base number" on the financial statement in question.

D$)$ a percentage of the "bottom line."