A company has reported the following revenue figures over the last five years: Year 1: $100,000 Year 2: $110,000 Year 3: $120,500 Year 4: $130,000 Year 5: $145,000 Using trend analysis, which of the following statements regarding the company's revenue growth is most accurate?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Trend Analysis of Revenue Growth

Medium Analysis Techniques Trend Analysis

A company has reported the following revenue figures over the last five years:

U\sing trend analysis, which of the following statements regarding the company's revenue growth is most accurate?

The revenue has increased at a uniform rate of approximately 8.9% per year.

The average annual revenue growth rate was approximately 9%.

The revenue growth shows increasingly accelerated growth over the five years.

Submitted11.1K

Correct5.9K

% Correct53%