Which of the following statements regarding financial information comparisons is true?
A)A time-series analysis compares a company's financial results for one period to its own results in other periods.
B)If we compare a company's performance in the current period to its competitors' performance,we are conducting a time-series analysis.
C)Benchmarks are used to compare companies in different industries.
D)Cross-sectional analysis refers to a ratio comparison across companies that are in different industries.

Question

Quizplus · Accepted Answer

A time-series analysis compares a company's financial results for one period to its own results in other periods. This type of analysis is used to track a company's performance over time and identify trends or changes in its financial performance. Comparing a company's performance to its competitors or to other companies in different industries would fall under cross-sectional analysis or benchmarking, not time-series analysis.

Which of the Following Statements Regarding Financial Information Comparisons Is