Question Description
I’m studying for my Accounting class and need an explanation.
However, what are some limitations of financial statements analysis? Meaning, what are some things which make financial statement analysis less reliable? Do some research on this and post your thoughts on what you find.

Explanation & Answer

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View attached explanation and answer. Let me know if you have any questions.
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Limitations of Financial Statements Analysis
Date
Institutional Affiliation
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One of the limitations of financial statement analysis is that they are not a substitute for
judgment. Financial statements are only used as a means of reading conclusions and making
informed decisions. Therefore, financial statement analysis cannot judge a decision made by
organizations but instead offers insight i...
