Asked by Shontae Stallworth on Jun 09, 2024

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A type of analysis that helps identify similarities and differences across companies or business units at a single moment in time is

A) trend analysis.
B) common size statements' analysis.
C) time-series analysis.
D) cross-sectional analysis.

Cross-Sectional Analysis

An analytical method that involves comparing different data points at a specific point in time across a sample or population.

Common Size Statements' Analysis

A method of financial analysis that expresses each line item as a percentage of a standard value from the financial statements to allow for comparison.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial analysis to predict future movements.

  • Comprehend the principles and application processes of diverse financial analysis techniques, such as benchmarking, time-series evaluation, and cross-sectional scrutiny.
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NK
nishika khubchandaniJun 10, 2024
Final Answer :
D
Explanation :
Cross-sectional analysis focuses on comparing different companies or business units at a single point in time, allowing for the identification of similarities and differences. Trend analysis looks at changes over multiple periods, common size statements compare different line items within the same company or unit, and time-series analysis looks at changes over time for a single company or unit.