A second limitation is that financial statements are historical; that is, they report only events that [have

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A second limitation is that financial statements are historical; that is, they report only events that [have happened / will happen], whereas we are also interested in estimating events that [have happened / will happen]. The fact that an entity earned $1 million last year [definitely predicts / is not necessarily an indication of] what it will earn next year.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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