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CFA Level 1
Financial Reporting and Analysis

Understanding Trend Analysis Conclusions

Very Easy Analysis Techniques Trend Analysis

Trend analysis is a key technique used in financial reporting that involves comparing financial data over a period of time to identify patterns or changes in performance. An analyst reviews the revenue figures for a company over the past five years and notes that there has been a consistent increase in revenue each year. Which of the following conclusions can be drawn from this trend analysis?

Hint

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