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.

Financial Statement Analysis

This is the process of reviewing and evaluating a company's financial statements to make business decisions.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, including revenues, expenses, gains, and losses.