Discuss the Limitations That Affect Financial Statement Analysis

question 36

Essay

Discuss the limitations that affect financial statement analysis.

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Definitions:

Productivity

A measure of how efficiently outputs (goods and services) are produced from inputs (labor, capital, materials).

Global Financial Crisis

Was a consequence of sub‐prime mortgage defaults in the United States in 2008 and culminated in a worldwide recession.

Process Re-Engineering

A complete overhaul and innovative redesigning of business procedures aimed at achieving significant enhancements in key performance indicators.

Customer Needs

Refers to the wants or desires that a customer expects a product or service to fulfill.