Name Two Important Limitations of Using Accounting Data to Measure

question 38

Essay

Name two important limitations of using accounting data to measure competitive advantage.

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Definitions:

Company Policies

Guidelines and rules established by a company to govern its actions and decision-making processes.

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, or overdrafts.

Bank Reconciliation

A process that explains the difference between the bank balance shown in an entity's bank statement, as supplied by the bank, and the corresponding amount shown in the entity's own accounting records at a particular point in time.

Bank Interest

Interest charged by banks on loans or earned on savings accounts and other investments.