Question

From the following __________ limitations of financial statements.

• A. bias
• B. assets may not realise
• C. vital information missing
• D. all of the above

Answer 1

The correct option is D all of the above

Financial statements are very important for a business but it has many limitations being personal bias, assets may not realise, vital or qualitative information missing. The financial statements may be affected by personal bias as the person making the statements is a human being. Financial statements do not show detailed information about every transaction and they also do not record the qualitative information. The statements only record quantitative information.