What is the major limitation of financial statements?
September 1, 2009 - 12:15 am
Is it because all three statements are complex or is it because you can’t compare the reports to each other?
I think if you mastered the method of preparing financial statements and know the nature of financial statements. You’ll feel the financial statements is a tool, a displayed tool.The existed accounting standards and the method of preparing financial statements help you resolve your problem.
When you mastered the method, all three statements are not complex and you can compare all the statements between different companies.
September 1st, 2009 at 5:37 am
I think it is neither. In my opinion the weakness is that financial statements are historical documents.
They present a picture of what was, not a picture of what is.
Hope this helps
Jerry-the-bookkeeper
References :
September 1st, 2009 at 6:24 am
I think if you mastered the method of preparing financial statements and know the nature of financial statements. You’ll feel the financial statements is a tool, a displayed tool.The existed accounting standards and the method of preparing financial statements help you resolve your problem.
When you mastered the method, all three statements are not complex and you can compare all the statements between different companies.
References :
http://www.aspringsoft.com
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