Question : Which of the following is the Objective of Ratio Analysis?
Option 1:
It provides the data for cross-sectional analysis, for comparison with some chosen enterprises in the same industry.
Option 2: To offer data for time-series analysis, i.e., to compare a firm's present ratios with its historical ratios.
Option 3: Both (1) and (2)
Option 4: None of the above
Correct Answer: Both (1) and (2)
Solution : The objective of Ratio Analysis are:
(1)It provides the data for cross-sectional analysis, comparing some chosen enterprises in the same industry.
(2)To offer data for time-series analysis, i.e., to compare a firm's current ratios with its historical ratios. Hence, the correct option is 3.
Question : Which of the following is not the Objective of Ratio Analysis?
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 : Choose the correct statement:
Statement 1: Cross-sectional Analysis compares a firm's ratios to those of a few chosen companies in the same industry or to the industry average at the same period. A similar comparison is beneficial in determining the firm's
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.
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