3. **How can financial ratio analysis help in evaluating a company's performance and financial health, and which ratios are most commonly used for this purpose?
2. **What are the key differences between cash accounting and accrual accounting, and how do they impact the presentation of financial statements?
**How are the three main financial statements—income statement, balance sheet, and cash flow statement—interconnected, and why is it important to analyze them together?
3. **What are the differences between cash flow statements and income statements, and why is it important to understand both when evaluating a company's financial situation?
2. **How can an investor use financial ratio analysis on financial statements to assess a company's performance and make informed investment decisions?
**What are the key components of a company's financial statements, and how do they interrelate to provide a complete picture of the company's financial health?
3. **How can the cash flow statement provide insights into a company’s liquidity position and cash management practices that aren't evident from the income statement or balance sheet?
2. **What are the key indicators to look for in the income statement when assessing a company’s profitability and operational efficiency?
**How do the balance sheet, income statement, and cash flow statement interrelate to provide a comprehensive view of a company’s financial health?
In what ways can financial statement analysis help investors and stakeholders assess the potential risks and opportunities associated with an investment in a company?