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
Option 1: Cross – sectional analysis
Option 2: Time–series analysis
Option 3: Ratio
Option 4: None of the above
Answer (1)
15th Jan, 2024
Correct Answer: Time–series analysis
Solution : Answer = time–series analysis
When comparing a firm's current ratios with its past ratios, it's called time-series analysis. This method evaluates changes and trends in a firm's performance over time, providing insights into its historical financial evolution and identifying patterns for forecasting future outcomes.
Hence, the correct option is 2.
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