Limitations of funds flow statement, Accounting Basics

Limitations of Funds Flow Statement: despite the a variety of uses of the announcement, it has convinced problems also.  They consist of the subsequent

i) It cannot substitute either an income statement or a Balance Sheet as it does not give complete information

ii) It is organized from the information enclosed in the financial statements and per se the accuracy of the information is uncertain

iii)  This declaration disregards the changes in the working capital items and thus fails to throw light on the financial position of the fear

iv)   It does not offer for uninterrupted changes

Posted Date: 10/15/2012 6:24:47 AM | Location : United States







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