Basic Financial Statements! The balance sheet, which summarizes what a ﬁrm owns and owes at a point in time.! The income statement, which reports on how much a ﬁrm earned in the period of analysis! The statement of cash ﬂows, which reports on cash inﬂows and outﬂows to the ﬁrm during the period of analysis! Title: DjVu Document Author: admin Created Date: 2/13/2008 4:35:52 PM Three Limitations Of Financial Analysis Accounting Essay Introduction. Financial analysis are evaluation of a business’s financial performance and as reference to guide the owners doing future financial plan by using own previous and current accounting record or compare with competitor. Aug 06, 2014 · Financial Analysis is defined as being the process of identifying financial strength and weakness of a business by establishing relationship between the elements of balance sheet and income statement.