Answered

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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

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