Question: Why is it important to do Year over Year ( YTD ) analysis of Income statement even though a firm is running month over month

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!