Why are trend results often more meaningful than a, Accounting Basics

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Why are trend results often more meaningful than a

Question: 1. Why are trend results often more meaningful than a comparison limited to two successive accounting periods?

2. How is a trend index calculated?

3. In inflationary times, why is comparative horizontal analysis and a trend index misleading?

4. What is the equation for converting past historic period dollars to current period dollars?

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