Ratios used to compare different firms at the same point in time belong to a category of analysis called:
A) time series analysis
B) cross-sectional analysis
C) industry comparative analysis
D) just-in-time analysis

Question

Quizplus · Accepted Answer

Cross-sectional analysis is the comparison of different firms at the same point in time, using ratios to determine how they stack up against each other. Time series analysis involves comparing a company's own performance over time, while industry comparative analysis involves comparing a company to its competitors in the same industry. Just-in-time analysis is not a type of financial analysis but a production management strategy.

Ratios Used to Compare Different Firms at the Same Point