Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Time series analysis is an example of which of the following?
Options:
Dynamic Analysis
Structural Analysis
Static Analysis
External Analysis
Correct Answer:
Dynamic Analysis
Explanation:
When an analysis covers a period of several years, it is termed as dynamic analysis of financial statements. Dynamic analysis is also called as horizontal analysis. Comparison of a firm's own performance over a period of time is called as Time Series Analysis.