Below are the limitation of financial statements .Please suggest ways to overcome them : -The financial statements contain only past data -The financial statement may not be comparable -The financial statements doesn't account for inflation -The financial statements are prepared on the basis of some assumptions -The financial statement doesn't cover the non-financial aspect of the company
Below are the limitation of financial statements .Please suggest ways to overcome them : -The financial statements contain only past data -The financial statement may not be comparable -The financial statements doesn't account for inflation -The financial statements are prepared on the basis of some assumptions -The financial statement doesn't cover the non-financial aspect of the company
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 1QE
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Below are the limitation of financial statements .Please suggest ways to overcome them :
-The financial statements contain only past data
-The financial statement may not be comparable
-The financial statements doesn't account for inflation
-The financial statements are prepared on the basis of some assumptions
-The financial statement doesn't cover the non-financial aspect of the company
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