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Significance of Financial Analysis

Comparative s...

Question

Comparative statement when prepared for comparing the enterprise's financial statements with that of another enterprise, is known as Inter-firm comparison.

A

True

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False

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Solution

The correct option is A True
True. Comparative analysis is comparison of various ratios balances of different years. It is basically done to understand the trend of the company. When the comparison is done between the firms its known as inter firm comparison.

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