Multiple Choice
Which of the following statements is correct?
A) Performing cross-sectional ratio analysis refers to assessing how a firm performed over a certain section of time.
B) Performing cross-sectional analysis is easy since industries are usually clustered with firms that are identical.
C) Time-series analysis is useless in assessing improvement or deterioration of ratios since the data is historical.
D) To interpret financial ratios, users should analyze the performance of the firm over time and the performance of the firm against one or more companies in the same industry.
Correct Answer:
Verified
Correct Answer:
Verified
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