Description
Critically evaluate the pros and cons of the following statements:
Financial statements are useless because they are incomplete. Not all assets or liabilities are included.
Financial statements are useless because they present assets at their historical costs rather than at their fair market values.
Explanation & Answer
Attached.
Running head: FINANCIAL STATEMENTS
1
Financial Statements
Institution Affiliation
Date
FINANCIAL STATEMENTS
1. Financial statements are useless because they are incomplete. Not all assets or
liabilities are included.
Pros of the statement
It is true that financial statements are incomplete since not all assets and liabilities are
stated. One of the pros of these statements is that many errors may occur due to the incidence of
speculations by the accountant (Cassar, Ittner, & Cavalluzzo, 2015). In other words, there are
chances of either overstating or understating the value of either liabilities or assets in the
organization. Another exa...
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