Cross-sectional ratio analysis is used to
A) isolate the causes of problems.
B) correct expected problems in operations.
C) provide conclusive evidence of the existence of a problem.
D) reflect the symptoms of a possible problem.

Question

Quizplus · Accepted Answer

Cross-sectional ratio analysis reflects the symptoms of a possible problem by comparing financial ratios of a company to industry averages or other benchmarks, indicating areas that may require further investigation.

Cross-Sectional Ratio Analysis Is Used to