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Which of the following is not a limitation of the analysis of financial statements? -

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Question

Which of the following is not a limitation of the analysis of financial statements?

Options

  • Window dressing

  • Price level changes ignored

  • Subjectivity

  • Intra firm comparison possible

MCQ

Solution

Intra firm comparison possible

Explanation:

Intra-firm comparison is a financial statement strength because it allows you to compare the company's financial position not only with previous years but also with that of a competitor.

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Meaning of Analysis of Financial Statements
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