Comparing a company's current ratio today with the same company's current ratio for the past ten years is called a(n)________.
A) cross-sectional comparison
B) benchmark comparison
C) industry comparison
D) time-series comparison

Question

Quizplus · Accepted Answer

Time-series comparison involves comparing a company's financial ratios, such as the current ratio, over a period of time. This helps to evaluate a company's performance and financial health over time. Cross-sectional comparison involves comparing a company's financial ratios to those of other companies in the same industry, while benchmark comparison involves comparing a company's financial ratios to those of a specific benchmark, such as the industry average or a competitor.

Comparing a Company's Current Ratio Today with the Same Company's