Question : ------------------involves the comparison of a firm’s ratios with that of some selected firms in the same industry or industry average at the same point of time. Such a comparison is helpful in assessing the relative financial position and performance of the firm.
Option 1: Time – series analysis
Option 2: Cross-sectional analysis
Option 3: Ratio
Option 4: None of the above
Correct Answer: Cross-sectional analysis
Solution : Answer = Cross-sectional analysis
Cross-sectional analysis compares a firm's ratios with those of selected firms in the same industry or industry averages at a specific time. It aids in evaluating the firm's financial position and performance relative to its industry peers, providing insights into its competitiveness and efficiency. Hence, the correct option is 2.
Question : When comparison is to compare a firm’s present ratios with its past ratios. When ratios of the same firm over a period of time are compared, it is known as the
Question : Which of the following statements is true?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile