time dimension is important in financial statement analysis.The balance sheet shows the firm's financial position at a given point in time, the income statement shows results over a period of time, and the statement of cash flows reflects changes in the firm's accounts over that period of time.

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The time dimension is crucial in financial statement analysis. The balance sheet reflects the company's financial position at a specific point in time, the income statement shows performance over a specific time period, and the statement of cash flows illustrates changes in accounts over that same time period.

Time Dimension Is Important in Financial Statement Analysis