Because financial statement analysis is based on examination of accounting statements,which often do not represent economic earnings,they should not be included in investment analysis.

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Quizplus · Accepted Answer

While accounting statements are not a perfect representation of economic earnings, they are still useful in investment analysis as they provide important information about a company's financial health, performance, and future prospects. Therefore, financial statement analysis should be included in investment analysis, but should be used in conjunction with other information and analysis methods.

Because Financial Statement Analysis Is Based on Examination of Accounting