Question : Which of the following statements is true?

Option 1: A ratio could be compared or benchmarked with the last year’s ratio. It is also known as time-series analysis and past ratio.

Option 2: A ratio could be compared with the ratios of similar firms in the same industry or by industry average at the same point of time. It is known as cross-sectional analysis.

Option 3: Rule of thumb’ based upon well-proven conventions have evolved over a period of time.

Option 4: All 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 : 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 : ------------------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 

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