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 changes in the firm's accounts over that period of time.

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The time dimension is indeed important in financial statement analysis, and the balance sheet, income statement, and statement of cash flows all provide different insights into a company's financial performance over a period of time.

The Time Dimension Is Important in Financial Statement Analysis