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Give one limitation of financial analysis. - Accounts

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Question

Give one limitation of financial analysis.

Very Short Answer
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Solution

Comparison is unreliable if different firms adopt different accounting policies.

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Chapter 10: Financial Statements Analysis - SHORT ANSWER QUESTIONS [Page 10.8]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 10 Financial Statements Analysis
SHORT ANSWER QUESTIONS | Q 6. | Page 10.8
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