Accountancy Part BAnalysis of Financial Statements

Using the previous year's data of a business enterprise, percentage c…

Using the previous year's data of a business enterprise, percentage changes in selected data may be observed over time by using:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Trend Analysis

NCERT (2026-27 edition):
Trend Analysis – “It is a technique of studying the operational results and financial position over a series of years. Using the previous years’ data of a business enterprise, trend analysis can be done to observe the percentage changes over time in the selected data.”