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The limitations of financial statements are their heavy reliance on historical costs. Some limitations of financial statements analysis include inventory valuation, depreciation, interest, inflation, and
The limitations of financial statements are their heavy reliance on historical costs. Some limitations of financial statements analysis include inventory valuation, depreciation, interest, inflation, and fair value. After you watch the video, discuss two limitations that would concern an investor. In addition, discuss the steps you would take to have sufficient information in these areas of concern to make an investment decision.
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