Question

Which among the following is the limitation of financial statement?
(a) Hinders the performance (b)Affected by window
of financial analysisdressing
(c) Lack of qualitative (d) All of the above
analysis

Answer 1

Answer:

Financial Statements Have No Predictive Value

Financial Statements Have No Predictive ValueThe information in a set of financial statements provides information about either historical results or the financial status of a business as of a specific date. The statements do not necessarily provide any value in predicting what will happen in the future.

Answer 2

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.