what are the dermerits of analysis of financial statement
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Explanation:
One disadvantage of using financial statements for decision making is that the data and figures are based on the market at that given time. Depending on the market, it may change quickly, so executives should not assume that the numbers from a previous financial statement will remain the same or increase.
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Explanation:
Limitations of financial statement analysis
Not a Substitute of Judgement. ...
Based on Past Data. ...
Problem in Comparability. ...
Reliability of Figures. ...
Various methods of Accounting and Financing. ...
Change in Accounting Methods. ...
Changes in the Value of Money. ...
Limitations of the Tools Application for Analysis.
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