Effective financial analysis relies on internal sources of information such as the financial statements and notes to the accounts, as well as external sources such as the financial press and trade journals.

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This statement is true. Effective financial analysis requires both internal and external sources of information. Internal sources include financial statements and notes to the accounts, while external sources can include financial press and trade journals. Combining these sources can lead to a more comprehensive and accurate analysis of a company's financial health.

Effective Financial Analysis Relies on Internal Sources of Information Such