The 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 specific changes in accounts over that period of time.

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The statement is correct in stating that the time dimension is important in financial statement analysis, as each statement reflects a different time frame. The balance sheet provides a snapshot of the firm's financial position at a specific point in time, the income statement summarizes the results of operations over a specific period of time, and the statement of cash flows shows changes in cash and cash equivalents over that same period of time.

The Time Dimension Is Important in Financial Statement Analysis