The following is a paid post from Wiley.


Georgia Snow, CFA, is conducting research into GenCom LLC, a large company in the telecommunications industry. In so doing, she compares the level of days receivables across similar-sized companies in the industry across a number of years.

Snow is most likely undertaking which kind of company analysis?

A. Trend analysis

B. Common-size analysis

C. Cross-sectional analysis

Answer: C

In comparing a specific metric across a group of companies over a period of time, Snow is undertaking a cross-sectional analysis.

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