Answer :
Final answer:
Balance sheets and income statements are essential for understanding a company's financial health and making informed investment decisions.
Explanation:
Balance sheets and income statements are crucial financial documents that provide insights into a company's financial health. The balance sheet shows assets, liabilities, and net worth at a specific time, while the income statement indicates revenue, expenses, and profitability over a period.
Analysts use these statements to determine a company's financial performance, assess profitability, and make informed decisions about investments. Understanding these financial statements is essential for entrepreneurs and investors to gauge the viability and future prospects of a business.
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