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Question 5.KC.1: A(n) _______ analysis lets the analyst know how a company co...

A(n) _______ analysis lets the analyst know how a company compares to similar companies during the most recent time period.
a. Time series.
b. Industry.
c. Ratio.
d. Time series and an industry.

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a. Incorrect. Time series cannot be correct because comparing a company to similar companies is called an industry comparison, not a time series comparison.
b. Correct. The time series analysis compares the company’s current results with those in prior years.
c. Incorrect. The term ratio analysis is too general to be correct.
d. Incorrect. Time series is incorrect; see above.

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