Accountancy, asked by Anonymous, 3 months ago

Mention any three limitations of Financial Statement​

Answers

Answered by divyaprakash1281
5

Answer:

The following points highlight the five major limitations of financial statements, i.e, (1) Only Interim Reports, (2) Do not Give Exact Position, (3) Historical Costs, (4) Impact of Non-Monetary Factors Ignored, and (5) No precision.

Answered by 28aliza
4

Answer:

Limitations of financial statements

Financial Statements Are Derived from Historical Costs. ...

Financial Statements Are Not Adjusted for Inflation. ...

Financial Statements Do Not Contain Some Intangible Assets. ...

Financial Statements Only Cover a Specific Period of Time. ...

Financial Statements May Not Be Comparable. ...

Financial Statements Could be Wrong Due to Fraud.

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