Question 5.KC.2: Select the statement that is most true. a. A complete analys...
Select the statement that is most true.
a. A complete analysis of a company can be accomplished by comparing company ratios to industry averages.
b. A complete analysis of a company can be accomplished by examining a company’s current year ratios to past years.
c. A complete analysis of a company should include both an industry and time series comparison.
d. None of the above.
a. Incorrect. The industry and time series comparison provide the analyst with more complete information than just an industry analysis.
b. Incorrect. The industry and time series comparison provide the analyst with more complete information than just a time series analysis.
c. Correct. Doing both an industry comparison and a time series analysis will provide the analyst with a more complete analysis.
d. Incorrect. A company should do a time series and an industry comparison for a complete ratio analysis.