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Financial statement analysis consists of 3 steps outlined in your chapter. Match the step with the best explanation. Accounting analysis -a.b.c. Financial analysis -a.b.c. Prospective

Financial statement analysis consists of 3 steps outlined in your chapter. Match the step with the best explanation.

Accounting analysis

-a.b.c.

Financial analysis

-a.b.c.

Prospective analysis

a.

Evaluation of the extent to which a company's financial statements reflect economic realty

b.

Involves the use of adjusted financial information to conduct cash flow analysis, profitability analysis, and risk analysis

c.

Involves combining the results of the other two, along with an analysis of the business environment and company strategy, to forecast future financial statement information, especially cash flows and income

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