It is helpful in accessing company’s financial position. They can provide a functional understanding of a company’s operations so that modifications can be made.Time series analysis is the ratio analysis of different years.in time series analysis two years or sometimes more than two different years are analyzed
Benefits of cross sectional
Cross sectional analysis helps in ratio analysis of same year, different value analysis of a firm.Critically evaluate the benefits and limitation of using ratio analysis for both time series and cross sectional comparisons.
Accounting laws allows companies to choose accounting policies and use discretion while preparing accounts. Such type of freedoms leads to improper accounts of companies,which can effect cross sectional company comparisons.
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