Question

In relation to trend analysis, which of the following statements is/are correct? Statement-1: The trend analysis of ratios indicates whether the financial position of a firm is improving or deteriorating over the years. Statement-2: The significance of a trend analysis of the ratio lies in the fact that the analysis can know the direction of movement whether the movement is favourable or unfavourable.

A Only statement-1 is correct.
B Neither statement-1 nor statement-2 is correct.
C Both statement-1 and statement-2 are correct.
D Only statement-2 is correct.
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