Question : Which of the following is a method for analyzing financial statements?
Option 1: Variance analysis
Option 2: Trend analysis
Option 3: Break-even analysis
Option 4: None of the above
Correct Answer: Trend analysis
Solution :
Financial statement analysis techniques, tools, or processes include ratio analysis, average analysis, and trend analysis.
In order to make better economic judgments, financial statement analysis involves looking at a company's financial statements.
Hence option 2 is the correct answer.