Accountancy, asked by Leekhan2880, 1 year ago

when financial statements of two or more organisations are analysed, it is called :
a) intra-firm Analysis
b) vertical Analysis
c) none of these

Answers

Answered by mahakincsem
0

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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