Asked by
Frances Nolasco
on Oct 15, 2024
Verified
Financial analysis does not include assessing future performance and risk because financial statements are based on past performance.
Assessing Future Performance
The process of analyzing and evaluating a company's potential future financial health and operational success.
Financial Statements
Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.
- Be aware of the limitations of financial statement analysis, particularly in forecasting future performance.
Verified Answer
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Learning Objectives
- Be aware of the limitations of financial statement analysis, particularly in forecasting future performance.
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