Practicing Success
Analysis of the financial statement of an enterprise over other similar firms is known as: |
External Analysis Time Series Analysis Cross-sectional Analysis Static Analysis |
Cross-sectional Analysis |
It essentially involves regrouping and analysis of information provided by financial statements to establish relationships and throw light on the points of strengths and weaknesses of a business enterprise, which can be useful in decision-making involving comparison with other firms (cross-sectional analysis) and with firms’ own performance, over a time period (time series analysis). |