When analyzing financial statements, diagnosis is

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Diagnosis in analyzing financial statements refers to the identification of areas where a business may be experiencing problems or weaknesses, such as low profitability, high debt levels or inefficient operations. It involves examining both current and past financial data to understand the root causes of these issues and to develop recommendations for improvement. Option A refers to forecasting or prediction, while Option B describes analysis of trends. Option C is unrelated to financial statement analysis.

When Analyzing Financial Statements, Diagnosis Is