Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 57

Which of these is not a limitation of financial statements?

a. Qualitative data are not reflected in financial statements.

b. Market values of assets are not generally reported.

c. Estimates are commonly used and are sometimes inaccurate.

d. It may be difficult to compare firms in the same industry because they often use different accounting methods.

e. All of the above are limitations of financial statements.