Which of the Following Statements Is Correct

question 108

Multiple Choice

Which of the following statements is correct?

• A) Performing cross-sectional ratio analysis refers to assessing how a firm performed over a certain section of time.
• B) Performing cross-sectional analysis is easy since industries are usually clustered with firms that are identical.
• C) Time-series analysis is useless in assessing improvement or deterioration of ratios since the data is historical.
• D) To interpret financial ratios, users should analyze the performance of the firm over time and the performance of the firm against one or more companies in the same industry.

---

Definitions:

Academic Performance

The extent to which a student, teacher, or institution has achieved their short or long-term educational goals.

Simple Random Sampling

A sampling method where every member of a population has an equal chance of being selected.

Probability Sampling

A sampling method in which every member of the population has a known, non-zero chance of being selected, leading to representative and unbiased samples.

Quota Sampling

A sampling method where the sample is chosen to reflect the characteristics of the whole population in certain proportions.