Question : Which of the following is not the Objective of Ratio Analysis?

Option 1: To identify the areas of the business that require more attention

Option 2:

Not provide data for cross-sectional analysis, for comparison with some chosen enterprises in the same industry

Option 3:

To give a more thorough study of the business's liquidity, solvency, activity, and profitability

Option 4: To provide data that will be beneficial for estimating and creating future strategies

Question : When comparison is to compare a firm’s present ratios with its past ratios. When ratios of the same firm over a period of time are compared, it is known as the 

Option 1: Cross – sectional analysis 

Option 2: Time–series analysis 

Option 3: Ratio 

Option 4: None of the above 

Question : When comparison is to compare a firm’s present ratios with its past ratios. When ratios of the same firm over a period of time are compared, it is known as the 

Option 1: Cross – sectional analysis 

Option 2: Time–series analysis 

Option 3: Ratio 

Option 4: None of the above 

Question : Choose the correct statement:

Statement 1: Cross-sectional Analysis compares a firm's ratios to those of a few chosen companies in the same industry or to the industry average at the same period. A similar comparison is beneficial in determining the firm's relative performance.

Statement 2: Comparing a company's present ratios to its prior ratios is another technique to make comparisons using time-series analysis.

Option 1:

Statement 1 is correct, Statement 2 is wrong

Option 2: Statement 2 is correct, Statement 1 is wrong

Option 3: Both Statements are correct

Option 4: Both Statements are wrong

Question : ------------------involves the comparison of a firm’s ratios with that of some selected firms in the same industry or industry average at the same point of time. Such a comparison is helpful in assessing the relative financial position and performance of the firm.

Option 1: Time – series analysis 

Option 2: Cross-sectional analysis 

Option 3: Ratio 

Option 4: None of the above