Question

limitation of financial statements of company​

Answer 1

Explanation:The limitations of financial statements are those factors that a user should be aware of before relying on them to an excessive extent. Knowledge of these factors could result in a reduction of invested funds in a business, or actions taken to investigate further. The following are all limitations of financial statements:

Dependence on historical costs

Inflationary effects.

Intangible assets not recorded.

Based on specific time period.

No predictive value

Not verified

No discussion of non-financial issues.

Subject to fraud.

Not always comparable across companies.

Answer 2

dependence on historical costs.

inflationary effects.

intangible assets not recorded .

based on specific time period.

subject to fraud.