Question

What are the limitations of financial statements?

पर्याय

• Prepared on the basis of going concern concept 

• Doesn't consider price level change

• It's a study of interim report

• All of the above

Answer 1

All of the above.

Explanation:

Some limitations of financial analysis are:

• Financial analysis is just a study of interim reports.
• Financial analysis may be misleading without the knowledge of the changes in accounting procedure followed by a firm. 
• Financial analysis does not consider price level changes.
• The financial statements are prepared on the basis of on going concerns basis.
• Monetary information alone is considered in financial analysis while non-monetary aspects are ignored.