#1 Financial statement analysis plays an important role in the balance and security of the economy in that financial statements are used in a variety of faculties by a great many different users. “Financial statements are demanded because of their value as a source of information about the company’s performance, financial condition, and resource stewardship (Revsine et al, 2018, p. 1-3).” As such, when there is little confidence in the application and reliability of financial statements there becomes a lack of investing in the economy by consumers and investors. According to Rezaee (2017, p. xi), as a result of the global financial crisis that was brought on by Enron, WorldCom and others that perpetrated enormous financial scandals, regulators of corporate financial statements really began focusing on better understanding how to identify malfeasance through more thorough financial statement analysis. Through the process of analyzing financial statements there is much that is to be gleaned from the information that is provided by straightforward reporting. As previously mentioned, financial statements are a means through which users seek information for decision making. “The primary objective of capital markets is the allocation of financial resources (Gruber, 2014, p. 13),” When there is confidence in the financial reports, there are those that are willing to sow into the economy. Financial analysts that provide feedback and thorough evaluations provide a necessary service for internal use for budgeting, decisions on investments or shifts in business, bonus’, and so forth. It is important for a company to decide what information will be made available as public knowledge on their financial statements, the information can either help or hinder the company (Revsine et al, p. 1-3). Jesus said to the Jews in John 8:32 (NKJV) that if they followed his teachings that the truth would set them free. Although, this is not a straight-line application of what he was talking about, I believe that truth equaling freedom is a universal reality, as truth in financial statement analysis is an example of this in that greater understanding brings wisdom and thus results in wise decision making whether it is by a bank, an investor, or shareholders. References Grüber S. (2015). The fundamentals of financial accounting and reporting. In: Intangible Values in Financial Accounting and Reporting. Springer Gabler, Wiesbaden. https://doi-org.ezproxy.liberty.edu/10.1007/978-3-658-06550-8_2 Holman Bible Publishers. (2013). Holy Bible: New King James version. Revsine, L., Collins, D.W., Johnson, W.B., Mittelstaedt, H.F., & Soffer, L.C. (2018). Financial reporting & analysis. McGraw Hill Education (8th ed.). Rezaee, Zabihollah. (2017) Forensic accounting and financial statement fraud. volume I, fundamentals of forensic accounting. New York, NY: Business Expert Press, 2019. Print. #2 Financial statement analysis is an evaluation of ...