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
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.
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.
Question : Which of the following is the Objective of Ratio Analysis?
Question : Comparison of values of one period with those of another firm for the same period is known as –
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