Financial modeling refers to the application of spreadsheet software to define simple arithmetic relationships among variables within the firm's income, balance sheet, and cash-flow statements and to define the interrelationships among the various financial statements.

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Financial modeling involves using spreadsheet software to create mathematical models for a company's financial statements, including income statements, balance sheets, and cash flow statements. These models help to define the relationships between different variables and highlight important interrelationships among the financial statements.

Financial Modeling Refers to the Application of Spreadsheet Software to Define