Comparing a company's debt-to-equity ratio for 2010 to the debt-to-equity ratios for 2010 from other companies in the same industry is called a(n)________.
A)time-series comparison
B)benchmark comparison
C)cross-sectional comparison
D)industry standard comparison

Question

Quizplus · Accepted Answer

Cross-sectional comparison involves comparing financial ratios of a company to those of other companies in the same industry. Time-series comparison involves comparing a company's ratios from one period to another. Benchmark comparison involves comparing a company's ratios to a predetermined benchmark or standard. Industry standard comparison is not a commonly used term for comparing ratios.

Comparing a Company's Debt-To-Equity Ratio for 2010 to the Debt-To-Equity