Comparing a company's debt-to-equity ratio for 2014 to the debt-to-equity ratios for 2014 from other companies in the same industry is called a(n)________.
A) time-series comparison
B) benchmark comparison
C) cross-sectional comparison
D) efficient ratio analysis

Question

Quizplus · Accepted Answer

Cross-sectional comparison involves comparing a company's ratios with those of other companies in the same industry at the same point in time. Time-series comparison involves comparing a company's ratios over time, and efficient ratio analysis involves using a combination of ratios to evaluate a company's financial performance. Benchmark comparison is not a commonly used term in financial analysis.

Comparing a Company's Debt-To-Equity Ratio for 2014 to the Debt-To-Equity