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Question : Comparison of values of one period with those of another firm for the same period is known as –

Option 1: Intra-firm comparison.

Option 2: Inter-firm comparison

Option 3: Either 1 and 2

Option 4:  None of the above 


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Inter-firm comparison


Solution : Answer = Inter-firm comparison.

Comparing the financial performance of two or more businesses in the same industry is known as an inter-firm comparison. Comparing their financial statements—such as their cash flow, income, and balance sheets—will enable a firm to make a comparison.
Hence, the correct option is 2.

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