The Major Limitation of Financial Statements Is

question 101

Multiple Choice

The major limitation of financial statements is

• A) in their complexity.
• B) in their lack of comparability.
• C) in their use of historical cost accounting.
• D) in their lack of detail.

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Definitions:

Malnutrition

A condition resulting from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.

Obesity

A medical condition characterized by excessive body fat that increases the risk of health problems such as heart disease and diabetes.

Grams

A metric unit of mass equal to one thousandth of a kilogram, used commonly in science and everyday life for measuring weight.

Very Low

typically describes a significantly reduced quantity, level, or intensity of something when compared to a standard or expected value.