when financial statements of two or more organisations are analysed, it is called :
a) intra-firm Analysis
b) vertical Analysis
c) none of these
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When financial statements of two or more organizations are analyzed, it is called b) inter-firm analysis
Explanation for correct option
- The inter-firm analysis is correct because the word "inter" is used when we talk about the comparison of two or more things e.g. external analysis.
- So, when financial statements of two or more organizations are analyzed, it is called inter-firm analysis.
Explanation for incorrect option
- The word "inter" is used when we talk about something internal e.g. within itself. So, intra-firm analysis is incorrect here.
Explanation for incorrect option
- Vertical analysis is completely a different thing.
- In this method, we analyze each line element as a percentage of a base figure.
Have a look at the complete question
When Financial Statements of two or more organizations are analyzed, it is called :
(a) Intra-firm Analysis
(b) Inter-firm Analysis
(c) Vertical Analysis
(d) None of these
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