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Which of the following is true of financial statement analysis? (what is the correct answer and please explain why Answers: Its inputs must be qualitative

Which of the following is true of financial statement analysis? (what is the correct answer and please explain why

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Its inputs must be qualitative to be useful for forecasting and valuation.

It cannot draw conclusions about the future, since only past information is observable.

It is performed by a limited number of stakeholder groups, primarily analysts.

It may involve the analysis of information outside the financial statements, such as footnotes and proxy statements.

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